Mary has an old house built in 1950 that she would be willing to sell for $100,000. If someone offers to buy her house at $110,000, Mary's producer surplus would be equal to:
A) $5,000.
B) $10,000.
C) $55,000.
D) $100,000.
Ans: B) $10,000.
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A) stabilized; less B) stabilized; more C) slowed; less D) slowed; more
If the Federal Reserve purchases $1 million in government securities in the open market, with a 25 percent required reserve ratio on deposits, the maximum increase in deposits would be
a. $4 million. b. $10 million. c. $25 million. d. -$4 million. e. none of the above
Which of the following goods is the most liquid?
A. House B. Saving deposit C. Painting by Monet D. Antique sword from WWI
Whether exchanges are strictly domestic or across international borders, every party to any transaction
A. must pay the highest retail value. B. expects to gain. C. tries to break even. D. produces the highest rate of output.