Consumer surplus increases whenever the price of a good increases
a. True
b. False
Indicate whether the statement is true or false
False
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On average, in the recessions since 1950, it has taken ________ for employment to return to its cyclical peak
A) about 6 months B) about 1 year C) about 18 months D) almost 2.5 years
If a consumer is willing and able to pay $20 for a particular good and if he pays $16 for the good, then for that consumer, consumer surplus amounts to
a. $4. b. $16. c. $20. d. $36.
The nominal interest rate is the:
A. annual percentage increase in the dollar value of a financial asset. B. real rate of return on an asset. C. annual percentage increase in the purchasing power of a financial asset. D. the real interest rate minus the inflation rate.
Consider a call option; in terms of the option writer and option holder, who is the buyer? Who is the seller? Finally, who has the option? Explain.
What will be an ideal response?