Suppose two coffee snobs who must have their coffee and cream in exact proportions (each cup is 10 coffee per 1 unit cream) are invited to a weekend long event (during which they can easily consume 8 cups of coffee). Suppose Snob A is given 8 units of cream and Snob B is given 80 units of coffee. The post trading result (one in which any trade that makes both parties better off than their initial
allocation) will guarantee each person
a. nothing
b. at least 1 cup of properly made coffee.
c. at least 2 cups of properly made coffee.
d. exactly 4 cups of properly made coffee.
b
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If the current market price of good Z is below the equilibrium price of good Z
A) it must be because the government has imposed a price ceiling in the market for good Z. B) there is a shortage of good Z. C) there is a surplus of good Z. D) demand must necessarily decrease to restore equilibrium. E) a and b
A firm facing the demand curve P = 10 - Q has zero marginal costs, fixed costs of 12, and is a single price monopolist. What quantity would it produce and what would its profit (loss) situation then be?
What will be an ideal response?
The Federal Reserve's long standing tools include
A. changing the reserve ratio. B. open market operations. C. changing the level of the targeted interest rate. D. all of these options are correct.
As a result of the impact of unions on the labor supply, ______.
a. wages in union jobs are about 15% higher than nonunion jobs b. wages for nonunion workers outpace union rates c. union openings often go unfilled due to featherbedding d. a high percentage of private sector openings are union jobs