If you are willing to sell your car business for $500,000 and someone offers you $420,000 for it, this transaction will generate:
a. There is no surplus created
b. $80,000 worth of seller surplus and unknown amount of buyer surplus
c. $40,000 worth of buyer surplus and $40,000 of seller surplus
d. $80,000 worth of buyer surplus and unknown amount of seller surplus
a
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Which of the following would not lead to a shift in an economy's production possibilities curve?
a. Change in technology. b. Change in the number of resources. c. An earthquake. d. Improvement in the education level. e. Change in the composition of current output.
The indifference curves for nickels and dimes will be
A. a straight line with negative slope. B. a straight line with positive slope. C. concave. D. L-shaped.
When free trade begins, producers in the importing nation gain while producers in the exporting nation are worse off.
Answer the following statement true (T) or false (F)
All possible combinations of goods that can be purchased at fixed prices with a specific income is
A. a marginal utility curve. B. a total utility curve. C. a budget constraint. D. an indifference curve.