Microeconomics

The so-called “death tax” might A) aim to alter endowments so as to a

The so-called “death tax” might A) aim to alter endowments so as to attain an inefficient outcome. B) aim to alter endowments consistent with the First Theorem of Welfare Economics. C) aim to alter endowments consistent with the Second Theorem of Welfare Economics. D) aim to alter prices consistent with the First Theorem of Welfare […]

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Date: September 9th, 2020

Any competitive equilibrium is Pareto efficient because, with a compet

Any competitive equilibrium is Pareto efficient because, with a competitive equilibrium, A) the marginal rates of substitution are equal for all consumers. B) the price line is the contract curve. C) mutual gains from trade exist. D) the slope of the price line equals the ratio of the MRS for all consumers.   ANSWER A […]

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Date: September 9th, 2020

Assume Congress decides that Social Security taxes must increase in or

Assume Congress decides that Social Security taxes must increase in order to fund the system. This would A) shift up the marginal cost curve for any firms that hire labor. B) guarantee a decrease in profits. C) shift up the average fixed cost curve for any firms that hire labor. D) guarantee an increase in […]

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Date: September 9th, 2020