Juanita goes to the Hardware Emporium to buy a new circular saw. She is willing to pay $120 for a new saw, but buys one on sale for $85. Juanita's consumer surplus from the purchase is
A) $35. B) $85. C) $120. D) $205.
A
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The formula used to determine how long it will take a country to double its real GDP is called
A) the nominal-to-real formula. B) the double-or-nothing formula. C) the expenditure multiplier. D) the rule of 70.
? In Figure 5-16, a decrease in the price of apples will
A. shift Adam’s budget constraint out. B. make Adam’s budget constraint steeper. C. shift Adam’s indifference curves out. D. make Adam’s budget constraint flatter.
Can a country have a trade deficit forever?
What will be an ideal response?
Answer the following statements true (T) or false (F)
1. In monopsony situations, a minimum wage might increase wage and employment levels. 2. Education is a form of human capital and it helps explain wage differentials. 3. Wage differentials are fully explained by differences in productivity and human capital among various workers. 4. There will be no principal-agent problem if a firm's owner (like a business consultant) does all the work of the firm.