A price change would have the largest income effect on a
A. magazine.
B. piece of clothing.
C. car.
D. tablet computer.
Answer: C
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Refer to Excise Subsidy. The amount of the subsidy paid to firms is given by
The following questions refer to the accompanying diagram which shows the effects of an excise subsidy given to firms. The initial price and quantity are P0 and Q0, respectively. After the subsidy is granted, the equilibrium quantity is Q1, firms receive the price Ps, and consumers pay the price Pd.
a. area A + B + E + H.
b. area B + C + D + E + F + G.
c. area D.
d. area F + G + I + J.
A quota refers to:
A) a tax on imported goods B) a limit on the amount of a good that can be imported C) the range within which an exchange rate is allowed to fluctuate D) a limit on the size of a trade deficit
Which of the following is an in-kind transfer payment?
a. Medicaid b. Social Security c. workers' compensation d. unemployment insurance e. Temporary Assistance to Needy Families
The ability of an economy to produce greater levels of output in the same period of time is called:
a. positive economics. b. negative economics. c. economic growth. d. marginal productivity.