According to the above figure for a gasoline market, an increase in the price from $2 to $4 will result in
A. a shortage of 30 million gallons.
B. an increase in quantity demanded of 10 million gallons.
C. an increase in demand of 20 million gallons.
D. an increase in quantity supplied of 20 million gallons.
Answer: D
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Refer to above figure. What is the consumer surplus enjoyed by Hungarian consumers of Boeing aircraft in the situation?
What will be an ideal response?
Over the past year, output grew 5%, capital grew 5%, and labor grew 1%. If the elasticities of output with respect to capital and labor are 0.5 and 0.5, respectively, how much did productivity grow?
A) 0.5% B) 1.0% C) 1.5% D) 2.0%
The advantage of game theory is that it allows us to focus on the
a. individual firm's incentives to cooperate or not b. relationship between the market and firm level demand curve c. costs and benefits d. government regulators and the firms in an industry e. models where there are no barriers to entry
Wages of doctors tend to be higher than wages of bankers. Which of the following is a compensating differential explaining the difference in wages?
a. Doctors have the stress of being responsible for other peoples' lives while bankers do not. b. Doctors are on call to work nights and weekends, while bankers work traditional business hours. c. Doctors must pay for malpractice insurance in case they are sued for a mistake on the job. d. All of the above are compensating differentials.