What must be true for a consumer to enjoy a consumer surplus from a unit of a good?
What will be an ideal response?
The marginal benefit to the consumer of the unit of the good must be greater than the price of the good.
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Which of the following broad categories are resources divided into?
a. Natural resources, labor, capital, and entrepreneurial ability b. People, money, and machines c. Free, scarce, abundant, and unlimited d. Savings, spending, investment, and capital e. Human, technological, and government
An increase in supply will cause the equilibrium price to ________ and the equilibrium quantity to ________
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
An example of a deficit item on the U.S. balance of payments is
A) the sale of a spark plug made by a U.S. firm in Michigan to a Nissan plant in Tennessee. B) the purchase of Japanese yen by a U.S. firm. C) a deposit in a bank in Chicago by the government of Saudi Arabia. D) the payment of a dividend by a British firm to a U.S. family.
A payday loan company has decided to open several new locations in the city. To decide where to open these locations it hires consultants and pays them per store opened. At the end of the quarter, the company notices a many of the new stores' sales volume fail to meet expectations. To incentivize the consultants to instead focus on opening profitable stores, the company decided to alter the
compensation to a percentage of the profit earned per new store. This puts the consultants a. In a less risky position b. A more risky position c. In risk neutral position d. None of the above