Microeconomics

Short-run costs are never equal or lower than long-run cost. Indicate

Short-run costs are never equal or lower than long-run cost. Indicate whether the statement is true or false   ANSWER False. Since the long-run curve “envelopes” all short-run curves there is always a level of output where short-run cost are equal to long-run cost. However, short-run cost can never be lower than long-run cost.  

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Date: September 9th, 2020

The United States is the most inequitable country in the developed wor

The United States is the most inequitable country in the developed world. Indicate whether the statement is true or false   ANSWER False. Efficiency means how many goods to produce, and equity means how the goods are allocated. They do not move in opposite directions. Even if one might say that the United States is […]

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Date: September 9th, 2020

Comparing the distribution of wealth of the wealthiest 1% of the popul

Comparing the distribution of wealth of the wealthiest 1% of the population in the United States before and after the recent Great Recession to what occurred before and after the Great Depression, A) the percentage of the wealth of the wealthiest 1% increased after the recent Great Recession, unlike what happened after the Great Depression. […]

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Date: September 9th, 2020

At a given point in time, the Rawlsian welfare function gives equal we

At a given point in time, the Rawlsian welfare function gives equal weight to each individual’s utility. Indicate whether the statement is true or false   ANSWER False. The Rawlsian welfare function gives a weight of 1 to the utility of the worst-off person and a weight of zero to the utilities of all others. […]

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Date: September 9th, 2020