Author Question: The policy shown in Figure 9.7 is a A) price floor of 50. B) price support of 50. C) price ... (Read 121 times)

nramada · **on:** Jul 1, 2018

The policy shown in Figure 9.7 is a

A) price floor of 50.
B) price support of 50.
C) price ceiling of 30.
D) quota of 2000.
E) quota of 4000.

Question 2

Assume there are only two individuals in an economy, Lisa and Bart. The utility possibilities frontier for these individuals is given as:

120 = UL + UB
where UL is Lisa's utility and UB is Bart's utility. Lisa's current level of utility is 20, Bart's level of utility is 90. This combination is:
A) inefficient.
B) economically efficient.
C) impossible, because it is outside of the welfare frontier.
D) none of the above