Tom and Jerry are the only members of society. The table above shows their marginal benefits from defense satellites, a public good. What is the marginal benefit to society from the fourth satellite?
A) $36
B) $20
C) $18
D) $4
A
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The average hourly wage (excluding benefits) in the United States is currently around
A. $7.25 B. $15.50 C. $20.00 D. $26.00
Smoothies cost $0.20 per ounce. Suppose that after a jog you usually buy an 8 ounce fresh fruit smoothie at your neighborhood juice bar. You recently won a discount coupon in a fund-raiser, which allows you to buy smoothies for $0.15 per ounce. Now after you jog you buy the 15 ounce size of smoothie. Which of the following are consistent with this information?
a. You get more utility from the 8 ounce smoothie than from the 15 ounce smoothie. b. You experience diminishing marginal utility for each ounce of smoothie you consume. c. You have an upward-sloping demand for smoothies. d. You have an inelastic demand for smoothie.
Which of the following is true of regulation?
A) Mortgage lending and banking have historically been unregulated and therefore regulation in these sectors is unpopular. B) Regulatory agencies often ignore the secondary effects of their actions and fail to foresee future problems. C) Policy-makers are hesitant to call for new regulations even when it is clear they would help avert future crises. D) Past regulations have been effective at averting crises, but they are unpopular because they reduce the profitability of the regulated industry.
Between 1988 and 1989, the price of retail space in Ginza, Tokyo’s premier commercial and entertainment center, rose from $400 to $625 per square foot. This was the result of an increase in demand in the face of a perfectly inelastic supply curve for retail space. Economists call this
A. monopoly profit. B. economic rent. C. usury. D. marginal revenue product.