An economic expansion leads to ________ needs-tested spending and ________ induced taxes
A) higher; lower
B) lower; higher
C) higher; higher
D) lower; lower
E) lower; no change in
B
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Comfy Clothing is thinking of hiring Tom. If hired, he can increase total production by 100 units a week. He would cost the firm $1,500 a week in wages. If the price of each unit is $20,
a. The MR of hiring the worker is $1,500 b. The MC of hiring Tom is $1,500 c. The firm should hire Tom since MR>MC d. All the above
If the intended aim of the price floor set in the graph shown was a net increase in the well-being of producers, then normative analysis would conclude that:
A. the policy was effective, since surplus gained by producers through higher prices is greater than the surplus they lost through deadweight loss.
B. the policy was ineffective, since surplus gained by producers through higher prices is greater than the surplus they lost through deadweight loss.
C. the policy was effective, since surplus gained by producers through higher prices is greater than the surplus lost by consumers through higher prices.
D. there is no "right" conclusion to be reached in a normative sense, since people have different opinions concerning what constitutes a better outcome.
Compare two economies A and B that start out with identical production possibilities curves. Economy A chooses an efficient point with 6 consumption goods and 3 capital goods, while economy B also chooses an efficient point, but with 4 consumption goods and 5 capital goods. In the future we can predict:
a. economy A will operate inefficiently. b. economy B will operate inefficiently. c. economy A and economy B will grow equally fast. d. economy A will grow faster than economy B. e. economy B will grow faster than economy A.
In order to have adequate water access, based on the World Bank definition, there should be
A. A public lake or stream within a mile of everyone's home. B. Indoor plumbing in at least one-quarter of the homes in a country. C. A private water pipe outside everyone's home. D. A protected public water pipe within half a mile of everyone's home.