Reference no: EM131244641
1. What is the change in total welfare with the subsidy?
a) Gain of C and E, society is better off
b) Loss of C and E, society is worse off
c) Loss of K, society is worse off
d) Loss of M, society is worse off
2. What is the change in total welfare with the tax?
a) Gain of C and E, society is better off
b) Loss of C and E, society is worse off
c) Loss of K, society is worse off
d) Loss of M, society is worse off
For questions 3 through 5, use the same diagrams to consider the effects of the government setting a price floor at the same price that consumers would pay with a tax.
3. What is the consumer surplus before and after the price control?
a) A, B, and C before; A after
b) G, H, and I before; G after
c) G, H, J, and K before; G after
d) G and H before; G, H, J, and K after
4. What is producer surplus before and after the price control?
a) D, E, and F before; F after
b) D,E, and F before; B, D, and F after
c) J and L before; L after
d) JandLbefore;H,I,J,andLafter
5. What is the change in total welfare with the price control?
a) Gain of C and E, society is better off
b) Loss of C and E, society is worse off
c) Loss of K, society is worse off
d) Loss of M, society is worse off
|
Described by the utility function-maximize utility
: Sally the Sleek’s preferences can be described by the utility function U(x,y) = x^2y^3/512. Prices are px = 2 and py = 6; she has an income of $80 to spend. How much should Sally consume of x and y in order to maximize utility, given her income?
|
|
Differences between developed and less developed
: What are the differences between developed and less developed or emerging market countries? How are they viewed by the marketplace?. Must include any resources used.
|
|
No viable substitute has been created to replace gasoline
: In June 2008, the U.S. retail gas price jumped from $3 to $4 a gallon. This is a 33% increase in price from January 2008. During that time, the total quantity of gasoline purchased fell by 3%. Supplies of gasoline produced also decreased from 1 milli..
|
|
Satisfy the properties of completeness and transitivity
: Henry the Geek likes books (B) and computer games (C). We have observed that he preferred the bundle (12,8) over (9,15), bundle (20,6) over (15,10), and bundle (4,16) over (13,9). Assume that his preferences satisfy the properties of completeness, tr..
|
|
What is the change in total welfare with the subsidy
: What is the change in total welfare with the subsidy? What is the consumer surplus before and after the price control? What is producer surplus before and after the price control?
|
|
The consumer price index is
: The Consumer Price Index is: Ethnocentric staffing appeals to companies that want to maintain tight control over decision making in branch offices abroad. Ethnocentric staffing formulates policies designed to work in every county in which they operat..
|
|
Manufactures an highly reliable riding lawnmower
: Level-Mow, Inc. manufactures an highly reliable riding lawnmower. Level-Mow currently sells 1200 units per year at a current price of $2,250. If the research department is correct, what will be the annual quantity sold of the mowers after the price r..
|
|
Draw and explain a backward bending labor supply curve
: What should the USA government do with individuals' that fight with for ISIS? i need a claim. reason, supporting , acknowledge, and respond. Why has cost containment become such a focus of the American public? Give examples of current cost containm..
|
|
Explain maturity intermediation-denomination intermediation
: Describe how a Commercial Bank (JP Morgan Chase etc) acts as an intermediary in the creation and flow of money? Example, how does it use checking and savings accounts for mortgages, auto loans, small business loans etc. Explain, maturity intermediati..
|