Henry is willing to pay 45 cents, and Janine is willing to pay 55 cents, for 1 pound of bananas. When the price of bananas falls from 50 cents a pound to 40 cents a pound,
a. Henry experiences an increase in consumer surplus, but Janine does not.
b. Janine experiences an increase in consumer surplus, but Henry does not.
c. both Janine and Henry experience an increase in consumer surplus.
d. neither Janine nor Henry experiences an increase in consumer surplus.
c
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There is 5% average tax on imported goods in the United States. This tax is known as a(n) ________.
A. tariff B. sales tax C. quota D. income tax
Economists talk about trade-offs a lot because they have come to understand that whenever there is a winner from a policy or transaction, there must also be a loser.
Answer the following statement true (T) or false (F)
An explicit cost is:
A. omitted when accounting profits are calculated. B. an implicit cost to the resource owner who receives that payment. C. always in excess of a resource's opportunity cost. D. a money payment made for resources not owned by the firm itself.
A reduction in the saving rate will not affect which of the following variables in the long run?
A) output per worker B) the growth rate of output per worker C) the amount of capital in the economy D) capital per worker E) none of the above