If a producer is willing to receive at least $2 for a pen that she manufactures but she actually receives $7 for it. The producer surplus of the pen for that producer is
A) $2.
B) $5.
C) $9.
D) -$5.
Answer: B
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Which of the following is not a characteristic of a chicken game?
A) Neither player has a dominant strategy. B) Nash equilibria exist at every outcome where the players successfully coordinate. C) The two general outcomes are where players either coordinate with one another or they do not. D) When both players play their tough strategy, they each receive their best possible payout.
In comparing money to shares of Apple stock, we can say that
A) money is a store of value, but shares of Apple stock are not. B) shares of Apple stock are a store of value, but money is not. C) both money and shares of Apple stock are stores of value. D) neither money nor shares of Apple stock are stores of value.
The most important determinant of price elasticity of supply is
a. price elasticity of demand b. technological conditions such as how rapidly costs increase when a firm increases its output c. whether the production process relies heavily on capital or on labor d. the number and closeness of available substitutes e. whether the product is a normal good or an inferior good
Which of the following is not considered an automatic stabilizer?
a. Food stamp program for people with low incomes b. Welfare program for families with dependent children c. Medicaid, a health program for the poor d. Financial assistance for disabled people e. Unemployment programs that pay benefits to those who lose their jobs