Refer to Figure 4-1. If the market price is $1.00, what is the consumer surplus on the third burrito?
A) $0.50 B) $1.00 C) $1.50 D) $7.50
A
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Extensive agricultural cultivation from 1870 to 1910, as described by Hughes and Cain (2011), meant that
(a) there could be no increase in agricultural output per man hour. (b) the percentage increase in acreage under cultivation and the percentage increase in agricultural output was roughly the same. (c) the proportion of the labor force in agriculture steadily increased. (d) all of the above were true.
Suppose price increases from $9.00 to $11.00. Using the mid-point formula, the percentage change in price is:
A. 20% B. 25% C. 20% D. 2%
According to the law of supply, when the price of a good increases we would predict that: a. less will be produced
b. less will be consumed. c. more will be produced. d. more will be consumed.
Lou and Toby both live in a little town and are trying to sell their cars. Both of their cars have a blue book value of $10,000. Lou has an American car like most of the people in town own. Toby owns the only Bulgarian car in town. If people in their town are risk averse, then who will get closest to the blue book value for his car?
A. Lou will because American cars are better than Bulgarian cars. B. Both should get the same price for their cars because both cars have the same blue book value. C. Toby will because there is less uncertainty about the quality of Lou's car. D. Lou will because there is less uncertainty about the quality of Lou's car.