Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. If 20,000 units of iced tea are sold
A) the marginal benefit of each of the 20,000 units of iced tea equals $3.
B) producer surplus equals consumer surplus.
C) marginal benefit is equal to marginal cost.
D) the deadweight loss is equal to economic surplus.
C
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The supply curve for Japanese yen (in terms of U.S. dollars) is ________.
A. downward-sloping because a lower dollar price of yen means U.S. goods are cheaper to the Japanese B. downward-sloping because a higher dollar price of yen means U.S. goods are cheaper to the Japanese C. upward-sloping because a lower dollar price of yen means U.S. goods are cheaper to the Japanese D. upward-sloping because a higher dollar price of yen means U.S. goods are cheaper to the Japanese
Opportunity cost is defined as
A) the highest valued alternative that must be given up to engage in an activity. B) the benefit of an activity. C) the total value of all alternatives that must be given up to engage in an activity. D) the monetary expense associated with an activity.
An example of screening job applicants is
a. listing years of education on résumés b. providing college transcripts c. sending in letters of recommendation d. dressing in a suit for interviews e. checking résumés for spelling and typographical errors
When we look at real GDP since 1970 or so, we see that recessions are evenly spaced over the years.
a. true b. false