Which of the following is most likely to increase the incentive to invest, produce, and employ others?
a. an increase in government expenditures to provide subsidies for large banks that made bad investment decisions
b. an increase in government expenditures that changes the composition of aggregate demand
c. a reduction in tax rates
d. an increase in payments to unemployed workers financed by borrowing
C
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The U.S. Postal Service has found its monopoly eroded over time because
a. the demand for mail delivery has become more inelastic b. Congress has taken away their monopoly over first-class mail c. the U.S. Postal Service cannot handle the volume of transactions d. the price of stamps has increased relative to other substitutes, such as the telephone, email, and online transactions e. of the decline in the use of fax machines
A deadweight loss decreases in size when a unit of output is produced for which
A. producer surplus exceeds consumer surplus. B. marginal cost exceeds marginal benefit. C. consumer surplus exceeds producer surplus. D. maximum willingness to pay exceeds minimum acceptable price.