Marco goes to the pet store to buy a dozen Koi fish for his new Koi pond. He is willing to pay $200 for the dozen fish, but buys them for a total of $140. Marco's consumer surplus from the purchase is
A) $5. B) $60. C) $140. D) $200.
B
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Which of the following statements is consistent with an increase in supply?
A) The price of labor input has increased. B) There has been an advance in technology. C) Consumers' incomes have increased. D) The market price has decreased.
Give an example not in the text of how price ceilings can lead to a shortage.
What will be an ideal response?
According to adaptive expectations theory, which of the following would be the result of expansionary monetary and fiscal policies?
A. The economy self-corrects to the natural rate of unemployment. B. There is a long-run trade off between inflation and unemployment. C. The inflation rate falls. D. These policies can succeed in reducing the unemployment rate.
Which of the following is legal under the Taft-Hartley Act?
A) closed shops B) collective bargaining C) secondary boycotts D) sympathy strikes