Assume that Joe is willing to produce a hamburger for $1, and Mary is willing to pay $3 for a hamburger. Which of the following is true?
A. Joe and Mary will only trade if the equilibrium price is less than $1.
B. Joe and Mary will not trade in equilibrium.
C. Joe and Mary can make a mutually beneficial exchange.
D. Joe and Mary cannot make a mutually beneficial exchange.
Answer: C
You might also like to view...
Suppose that you can either buy a radio from a firm for $50 or find and purchase the components yourself and then either assemble them yourself or hire someone to do so. You should
a. buy the radio because it's possible to do so b. assemble the radio yourself because it's possible to do so c. assemble the radio yourself only if you know how to do so d. assemble the radio yourself only if the total price of all the components is less than $50 e. assemble the radio yourself only if the total price of all the components plus the value of your own time is less than $50
In a market system, the primary instruments used to coordinate economic activity are
a. plans. b. prices. c. input-output analyses. d. quantities.
Market failure associated with the free-rider problem is a result of
a. a problem associated with pollution. b. benefits that accrue to those who don't pay. c. losses that accrue to providers of the product. d. market power.
Bolivia had a smaller budget deficit in 2003 than in 2002 . Other things the same, we would expect this reduction in the budget deficit to have
a. increased both interest rates and investment. b. increased interest rates and decreased investment. c. decreased interest rates and increased investment. d. decreased both interest rates and investment.