Which of the following is likely to yield the greatest consumer surplus?
a. a nugget of gold found in a rushing creek in Alaska
b. a gold necklace on sale at 20 percent off original price
c. a gold necklace on sale at 40 percent off original price
d. a dip in the neighbor's pool, at no charge
e. a gulp of water from an oasis in the Sahara desert after three days of thirst
E
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Refer to Scenario 10.2. Suppose that in addition to the tax, a business license is required to stay in business. The license costs $1000. What is the profit maximizing level of output?
A) 0 B) 90 C) 95 D) 100 E) none of the above
In which of the following situations will both market clearing price and the equilibrium quantity increase?
A) an increase in demand with no change in supply B) an increase in supply with no change in demand C) a decrease in supply with no change in demand D) a decrease in demand with no change in supply
In 1860, the Republican Party formed a coalition of anti-slavery voters that elected Abraham Lincoln to the presidency. Members of this coalition included all of the following groups except:
a. Northwestern farmers. b. Irish and German immigrants. c. Producers who were economically linked by the Northern Gateway. d. Large property owners in New Mexico and Utah.
Answer the following statements true (T) or false (F)
1. There is a correlation between the level of economic development of a nation and the status of its balance of trade. 2. The balance of payments is more like an income statement than a balance sheet. 3. If a U.S. farmer ships grain to Italy, this constitutes a debit transaction in Italy’s balance of payments. 4. Overseas investments by U.S. citizens are recorded as credit items in the financial account of the U.S. balance of payments. 5. Since unilateral transfers do not involve trading of goods or services, they are not included in the current account.