Joe's demand for spring water can be represented as p = 10 - Q (where p is measured in $/gallon and Q is measured in gallons). He recently discovered a spring where water can be obtained free of charge. His consumer surplus from this water is
A) $0.
B) $50.
C) $100.
D) unknown based upon the information provided.
B
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In a production possibilities frontier model, a point inside the frontier is
A) productively and allocatively inefficient. B) productively inefficient. C) productively efficient. D) allocatively efficient.
If a small change in price will lead to an infinite change in the quantity demanded, then the demand curve is: a. horizontal. b. vertical
c. inclined. d. non-linear.
A progressive tax
a. is one that taxes those with higher incomes at a higher rate than those with lower incomes. b. takes a similar percentage in the form of taxes from those with higher incomes as it does from those with lower incomes. c. takes a higher percentage of income in the form of taxes from those with lower incomes than from those with higher incomes. d. is any tax in which the dollar amount of taxes paid increases with income.
Supposed that you are interested in estimating country-level maternal mortality rate (mmrt) based just on the gross domestic product per capita (gdppct) and literacy rate (lrt) and you find that countries that have unusually high (for the given levels of gdppc and lr) mmr in one period also have unusually high mmr in the next period. Which of the following assumption for time series analysis does not hold?
A. No perfect collinearity. B. Zero conditional mean. C. Homoskedasticity. D. No serial correlation.