A new law applied to a competitive market that requires laid off workers be paid a large severance payment will
A) not generate a deadweight loss.
B) increase total welfare.
C) increase consumer surplus in the market.
D) decrease consumer surplus in the market.
D
Economics
You might also like to view...
Statistics on families below the poverty line may be overstated because:
a. the poor are primarily children who soon will move out of poverty. b. poverty in the United States is rich compared to poverty in other nations. c. the income levels used to measure poverty do not include in-kind transfers. d. unemployment compensation is a program closed to the poor.
Economics
The "ceteris paribus" clause in the law of demand does not allow which of the following factors to change?
a. Consumer tastes and preferences. b. The prices of other goods. c. Expectations. d. All of these.
Economics