If the price a consumer pays for a product is equal to a consumer's willingness to pay, then the consumer surplus relevant to that purchase is
a. zero.
b. negative, and the consumer would not purchase the product.
c. positive, and the consumer would purchase the product.
d. There is not enough information given to answer this question.
a
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Would consumers benefit more from a tariff or a quota on imports?
What will be an ideal response?
If the Fed sells $1 billion of short-term securities issued by the Bank of Japan and at the same time purchases $1 billion of short-term securities issued by the U.S. Treasury,
A) the monetary base will decline by $1 billion. B) the monetary base will rise by $1 billion. C) the Fed has conducted an unsterilized foreign-exchange intervention. D) the Fed has conducted a sterilized foreign-exchange intervention.
If the economy experiences a recession, the federal government's tax receipts will
A. decrease. B. remain the same. C. fall to zero. D. increase.
The Amsterdam flower market is
a. an example of an open outcry auction market b. an example of a Dutch auction market c. a commodity market in which bidding opens at a low price and then moves upward d. the world's best example of a perfectly competitive market e. a monopoly market