Consumers, Producers, and the Efficiency of Markets
1. Welfare economics is the study of
a. the well-being of less fortunate people.
b. welfare programs in the United States.
c. the effect of income redistribution on work effort.
Thinking Like an Economist
1. Which of the following terms are most closely associated with the study of economics?
a. force and acceleration
b. torts and venues
c. ego and cognitive dissonance
d. comparative advantage and deadwe
Chapter 4/The Market Forces of Supply and Demand117
The Market Forces of Supply and Demand
1. The forces that make market economies work are
a. work and leisure.
b. demand and supply.
c. regulation and restraint.
d. taxes and gov
Application: The Costs of Taxation
1. In 1776, the American Revolution was sparked by anger over
a. the extravagant lifestyle of British royalty.
b. the crimes of British soldiers stationed in the American colonies.
c. British ta
Interdependence and the Gains from Trade
1. People who provide you with goods and services
a. are acting out of generosity.
b. do so because they have no other choice.
c. do so because they get something in return.
d. are require