Recent research suggests that if Apple switched from uniform pricing of its iTunes to two-part pricing,
A) total welfare would increase, but consumer surplus would decrease.
B) total welfare and consumer surplus would increase.
C) total welfare would decrease, but consumers surplus would increase.
D) total welfare and consumer surplus would decrease.
B
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If the government decreases spending and taxes by 1,000 units and the marginal propensity to consume is .9, then
a. more information is needed. b. output will decrease by 900. c. output will decrease by 10,000. d. output will increase by 10,000.
An advantage of a corporation is
A) the ability to raise large sums of financial capital. B) unlimited liability on the part of shareholders. C) the fact that ownership and control are never separated. D) the fact that the corporation is dissolved when one of its owners dies.