An ad valorem tax on suppliers causes the _____ to shift by a constant _____. a. supply curve; percentage b. supply curve; amount c. demand curve; percentage d. demand curve; amount ANSWER a
Date: September 9th, 2020
The above figure shows a consumer’s indifference curves for soda and all other goods. Assuming a budget of $100, derive the consumer’s demand for soda for prices of $4 and $10 per case of soda. Estimate the price elasticity of demand for soda. What will be an ideal response? ANSWER At a price of […]
Date: September 9th, 2020
An ad valorem tax on demanders causes the _____ to shift by a constant _____. a. supply curve; percentage b. supply curve; amount c. demand curve; percentage d. demand curve; amount ANSWER c
Date: September 9th, 2020
Give a brief overview of how education attainment and elementary and secondary education spending has changed in the United States since 1940 . What will be an ideal response? ANSWER The percentage of U.S. adults with a high school diploma has changed dramatically since 1940 . In 1940, 24.1 percent of adults had a […]
Date: September 9th, 2020
Rawls argued that agreement on certain rules from behind a “veil of ignorance” would make those rules optimal. a. True b. False ANSWER a
Date: September 9th, 2020
Actions based on the more general Pareto criteria are preferable to actions based on application of interpersonal utility calculations. a. True b. False ANSWER a
Date: September 9th, 2020
For private consumption goods, the optimal number of users is determined by the unanimity rule. a. True b. False ANSWER b
Date: September 9th, 2020
Suppose the market for a good is expressed as follows: Inverse demand: P = 200 – 2Q Inverse supply: P = 2Q What is the equilibrium if the government imposes a supply quota of 75 units? What is the equilibrium if the government imposes a supply quota of 25 units? ANSWER The market equilibrium […]
Date: September 9th, 2020
As is shown by the example of college dropout Bill Gates, more education does generally not pay off. a. True b. False ANSWER b
Date: September 9th, 2020
If the “Marginal Congestion Cost” for a public good is constant then the optimal number of users is infinite a. True b. False ANSWER b
Date: September 9th, 2020
