When someone's willingness to pay is the same as the actual price paid for an item:
A. the individual will not purchase the item.
B. the individual's surplus is zero.
C. surplus cannot be maximized.
D. All of these are true.
B. the individual's surplus is zero.
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Labor growth depends mainly on ________ and labor productivity growth depends mainly on ________
A) population growth; increases in real GDP B) population growth; technological advances C) growth in real GDP per person; growth rate of capital D) growth in real GDP per person; technological advances
Beginning in 1971, the Nixon administration enacted a series of price controls in hopes of reducing inflation. The first of these, known as Phase I,
a. consisted of a price freeze. b. imposed a ceiling price on meat, but left other prices unregulated. c. froze wages, but left other prices unregulated. d. applied only to oil prices.
While smoking is on the decline in the United States, China is still puffing away madly. That's not because the government is eager to protect its citizens from the hazards of smoking. It's because China is eager to protect its own tobacco industry which is a state monopoly. How would entry of foreign companies into the tobacco market affect the economic profit of the state monopoly?
A) Its economic profits would increase because of rent seeking activity. B) Its economic profits would decrease because of increased competition. C) Its economic profits would increase because of increased competition. D) Its economic profits would decrease because of rent seeking activity.
Indifference curves are steeper on the right and flatter on the left
a. True b. False Indicate whether the statement is true or false