Suppose that Tom bought a bike from Helen for $195. If Helen's reservation price was $185, and Tom's reservation price was $215, the buyer's surplus from this transaction was:
A. $195
B. $20
C. $10
D. $215
Answer: B
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The ability of Intel to spread product development cost over a larger number of units of output arises from
A. constant returns to scale. B. minimum efficient scale. C. diseconomies of scale. D. economies of scale.
Although wages, incomes, and interest rates are most often discussed in nominal terms, what matters most are their real values
a. True b. False Indicate whether the statement is true or false
Other things the same, which bond would you expect to pay the lowest interest rate?
a. a bond issued by a state with a very good credit rating b. a bond issued by the U.S. government c. a bond issued by a fairly new company doing genetic research d. a bond issued by Nabisco
Contrast the economic performance of the American economy of 2001 with the economic performance of the 1996 to 2001 period. Use the appropriate aggregate demand and aggregate supply curves to distinguish the differing economic condition of the two periods.
What will be an ideal response?