Jane pays the market price of $69 for a new pair of running shoes, even though she would be happy to pay a maximum of $100 for the same pair of shoes. This is an example of the concept of
A. price ceilings.
B. producer surplus.
C. consumer surplus.
D. full economic prices.
Answer: C
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The alternate-section provision was designed to:
a. allow the government to share in increased land values resulting from railroad building. b. encourage private businesses to locate along railroad routes. c. discourage farmers from cultivating crops near railroad routes. d. make railroad stations more accessible to families.
Someone who committed the association-is-causation fallacy might conclude that
a. event B, which follows event A, was caused by the event A b. event B, which follows event A, was not necessarily caused by event A c. the simplest model is the best predictor d. what is true for the individual is also true for the group e. what is true for the individual is not necessarily true for the group
A barter economy occurs where
A) Excludes financial markets. B) Households pay for services provided by labor with goods and services. C) Businesses provide services to households in exchange for goods and services. D) All of the above.
Labor productivity increases when
A. capital/labor ratio decreases. B. labor and output increase proportionately. C. output decreases and labor increases. D. capital increases and labor remains constant.