In order to have an impact, a ________ must be set below the equilibrium price, and when this occurs, ________
A) price ceiling; consumer surplus increases
B) price floor; consumer surplus decreases
C) price ceiling; producer surplus decreases
D) price support; total revenue increases
E) price support; consumer surplus increases
C
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For a good whose production creates an external cost, the efficient quantity of output is
A) where the market demand curve and the market supply curve intersect. B) where the marginal social cost curve and marginal benefit curve intersect. C) as low as possible. D) zero. E) the amount of production so that the marginal social benefit exceeds the marginal social cost by as much as possible.
Which of the following correctly orders U.S. income measures from largest to smallest?
a. disposable personal income, gross national product, national income, net national product, personal income b. personal income, net national product, national income, gross national product, disposable personal income c. gross national product, net national product, national income, personal income, disposable personal income d. disposable personal income, personal income, national income, net national product, gross national product