When the market is in equilibrium, total surplus is maximized.
Answer the following statement true (T) or false (F)
True
Equilibrium makes the combination of consumer surplus and producer surplus as large as it can be.
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How does optimization in levels differ from optimization in differences? Assume that the city council has to choose one among the following three alternatives: setting up a school, setting up a hospital, and setting up a playground
The estimates of expected cost and benefit of all three projects are shown in the following table. How does the city council arrive at the optimal choice if both the techniques of optimization are implemented? Do the results vary? Project Cost ($) Benefit ($) Playground 15,000 30,000 School 20,000 50,000 Hospital 50,000 75,000
A country can never raise its standard of living by imposing a tariff
Indicate whether the statement is true or false
Which of the following is an example of trade policy at the regional level?
a. Congress passing legislation to prevent dumping. b. The European Union adopting a common currency c. The World Trade Organization holding a round of negotiations in France. d. The General Agreement on Tariffs and Trade being made.
Why is a discounted airline fare a price discrimination that can be offered?
(A) Because people who fly on business want the price discounts but do not qualify. (B) Because senior citizens qualify for discounts on certain types of flights but not on others. (C) Because people do not necessarily want to go where the discounts will allow them to go. (D) Because vacationers are willing to put up with the restrictions that the airlines impose.