Government policies resulting in reduced efficiency include (i) the welfare system (ii) unemployment insurance (iii) progressive income tax
a. (i) only
b. (ii) only
c. (i) and (ii) only
d. (i), (ii), and (iii)
d
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Sally recently got a 15 percent raise. She now purchases 7.5 percent more steak dinners. Sally's income elasticity for steak dinners is:
a. 0.5. b. 0.75. c. 1.5. d. 2.0.
A U-shaped long-run average cost curve indicates that
A) economies of scale follow diseconomies of scale. B) diseconomies of scale follow economies of scale C) economies of scale and economies of scope are the same. D) economies of scale dominate diseconomies of scale over all levels of production.
Suppose it takes Dan 5 minutes to make a sandwich and 15 minutes to make a smoothie, and it takes Tracy 6 minutes to make a sandwich and 12 minutes to make a smoothie. Which of the following statements is correct?
A. Dan has the comparative and absolute advantage in sandwiches. B. Dan has the comparative and absolute advantage in smoothies. C. Dan has the comparative advantage in smoothies, but Tracy has the absolute advantage in smoothies. D. Dan has the comparative advantage in sandwiches, but Tracy has the absolute advantage in sandwiches.
A factory worker earned $10 an hour in 1980. The CPI was 0.82 in 1980. The same factory worker was earning $15 an hour in 1990 when the CPI was 1.31. From 1980 to 1990, the factory worker's hourly real wage:
A. increased from $10 to $15. B. remained constant. C. decreased from $12.20 to $11.45. D. increased from $7.63 to $18.29.