David is willing to pay $30 for a watch which sells at a market price of $20 . The consumer surplus received by David if he buys the watch is $10
a. True
b. False
Indicate whether the statement is true or false
True
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The kitchen manager at an Italian restaurant is deciding what assignments he should give to his two cooks, John and David. John can make 25 pizzas or 40 servings of pasta per hour and David can make 20 pizzas or 30 servings of pasta
Which of the following should be the manager's choice? A) Fire David because he is not as productive as John. John will do both jobs. B) John will make pizza because he has comparative advantage in making pizza. C) David will make pizza because he has comparative advantage in making pizza. D) John and David both will spend half their time making pizza and half their time making pasta because each has a comparative advantage in making pizza.
If a monopoly is price discriminating between two groups, A and B, based on observable customer characteristics, there is no difference in the marginal cost of selling to the two groups, and the elasticity of demand for group A is -1.5 while the elasticity of demand for group B is -2.1, which of the following is true?
A. The markup and price for group A customers will be higher than for group B customers. B. The markup and price for group B customers will be higher than for group A customers. C. The markup for group A customers will be higher than for group B customers, but there is not enough information to determine which price will be higher. D. The price for group A customers will be higher than for group B customers, but there is not enough information to determine which markup will be higher.
If the short-run Phillips curve were stable, which of the following would be unusual?
a. an increase in government spending and a fall in unemployment
b. an increase in inflation and a decrease in output
c. a decrease in the inflation rate and a rise in the unemployment rate
d. a decrease in the money supply and a rise in the unemployment rate.
Economists who study terrorism use a similar definition of ________ as economists who study criminals.
A. "moral" B. "rational" C. "understandable" D. "sensible"