Tom walks Bethany's dog once a day for $50 per week. Bethany values this service at $60 per week, while the opportunity cost of Tom's time is $30 per week. The government places a tax of $35 per week on dog walkers. After the tax, what is the loss in total surplus?
a. $50
b. $30
c. $25
d. $0
b
Economics
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Optimal user fees are paid only by the consumers of the good or service produced.
A. True B. False C. Uncertain
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Consider an economy made up of 100 people, 60 of whom old jobs, 10 of whom are looking for work, and 15 of whom are retired. The number counted as unemployed is:
a. 10. b. 15. c. 40. d. 30. e. 90.
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As the chapter points out, there have been many cases where derivatives have led to a lot of abuse. If this is the case, why do derivatives exist?
What will be an ideal response?
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________ reflects household willingness to pay, and ________ reflects the opportunity cost of the resources needed to produce a good.
A. Price; marginal cost B. Price; average total cost C. Demand; price D. Marginal utility; price
Economics