The above figure shows the Lorenz curve for wealth for the nation of Rusha. If the government were to confiscate half of the wealth from the wealthiest twenty percent of the population and give it to the poorest twenty percent, then
A) wealth distribution would be more equal.
B) wealth distribution would be unchanged.
C) wealth distribution would be more unequal.
D) the Lorenz curve would shift rightward.
Ques. 2One problem with the utilitarian principle is that it ignores
A) increasing marginal costs.
B) decreasing marginal benefits.
C) the costs of making income transfers.
D) poor people.
Ques. 3The figure above shows a local lawn cutting service's demand for labor curve when the price of cutting an acre of lawn is 50 per acre. How much labor will the firm hire if the market wage is 300 per day?
A) 0 workers
B) 1 worker
C) 2 workers
D) 3 workers
Ques. 4In the figure above, assuming that the firm does not shut down, it will charge a price of
A) 1.
B) 2.
C) 3.
D) 4.
Ques. 5The figure above shows the demand and marginal revenue curves facing Sue's Surfboards, the sole renter of surfboards on Big Wave Island. If Sue is renting 25 surfboards an hour so that the marginal revenue is negative, then Sue's Surfboards
A) can increase its profit by increasing the number of rentals.
B) must face an inelastic demand for surfboard rentals.
C) must face a unit elastic demand for surfboard rentals.
D) must face an elastic demand for surfboard rentals.
Ques. 6The above table shows the total product schedule for the campus book store. If employees are paid 6 per hour and there are no other variable costs, then what is the marginal cost (MC) per book of increasing book sales from 83 to 87 books per hour?
A) 6.00
B) 4.00
C) 2.07
D) 1.50
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