In economics, the term "equity" means
A) economic benefits are distributed fairly.
B) everyone has an equal standard of living.
C) the hardest working individuals consume all they want.
D) only elected officials have high standards of living.
A
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Large projects that involve purchasing land from many landowners may not succeed due to the numerous expenses of negotiating so many different deals. These expenses, such as attorney's fees and bank fees, are examples of
A) transactions costs. B) eminent domain. C) the holdout problem. D) negative externalities.
In Figure 3-7 above, if natural real GDP = $2500, AP = $250, and the change in "a" = change in I = change in NX = 0, the tax cut required to achieve then natural real GDP is
A) $312.50. B) $250.00. C) $500.00. D) none of the above.
Consider a firm with the following cost and revenue information: ATC = $8, AVC = $7, and MR = MC = $6. If the firm produces Q = 60 in the short run, it:
A. is minimizing losses. B. makes a total loss of $60. C. should produce more output. D. should shut down.
When wages increase, the income effect of labor supply ________ the quantity of labor supplied because ________.
A. reduces; the price of leisure has increased B. reduces; workers acquire more of all normal goods (including leisure) when income increases C. increases; the value of working has increased D. increases; the price of leisure has increased