If a person receives a consumer’s surplus from the purchase of a good, it must be that
A. the amount that the person paid minus the amount that this person values that good is greater than zero.
B. the amount that the person values the good minus the amount that this person paid for that good is greater than zero.
C. the value is negative because consumers have diminishing marginal utility.
D. result is based solely on the supply of the good.
Answer: B
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Historically, real income per person:
A. barely changed at all until the 1800s but began to increase after. B. barely changed at all until the 1500s but began to increase after. C. has steadily increased at an average rate of 2 percent D. has barely changed at all worldwide.
Assume that a consumer purchases only two products and there is a decrease in the consumer's income. The prices of the two products stay constant. The decrease in income will result in a:
A. Shift of the budget line inward to the left B. Shift of the budget line outward to the right C. A decrease in the slope of the budget line D. An increase in the slope of the budget line
If the inflation rate is 2% and the real interest rate is 1%, then the nominal interest rate is around
A. 1%. B. 3%. C. 2%. D. -1%.
The OPEC oil cartel lost its market power and world oil prices fell in the 1980s because:
A) OPEC expanded its membership to include all international producers of oil. B) world consumers boycotted OPEC oil. C) a limit pricing strategy was pursued by some members of the cartel. D) members began to cheat on cartel agreements. E) the United States refused to buy oil from OPEC.