Jim is haggling with a car dealer over the sale price of a used car. When he entered the store he was the only customer. During the negotiations, a second customer walks in and is interested in that particular car. At this point
a. Jim has a better chance of having his offer accepted, since the seller does not have any outside offers
b. Jim has lower chances of having his offer accepted, since the seller has more outside offers
c. The disagreement value for the seller has increased
d. This should not impact Jim's chances of having his offer accepted
b
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The figure above shows the marginal social cost curve of generating electricity and the marginal private cost curve. The marginal external cost when 200 billion kilowatt hours are produced is
A) 0¢ per kilowatt. B) 10¢ per kilowatt. C) 20¢ per kilowatt. D) 15¢ per kilowatt. E) 5¢ per kilowatt.
Based on the chart for federal government expenditures, what are the three highest expenditure categories?
a. transfer payments, interest payments, and other expenditures
b. transfer payments, defense spending, and grants to state and local governments
c. defense spending , grants to state and local governments, and other expenditures
d. interest payments, grants to state and local governments, and other expenditures
Recall the Application about craft beer and the increase in the price of hops to answer the following question(s).According to this Application, between 2012 and 2017, the increase in craft beer production increased the price of hops:
A. by about 118 percent. B. by about 87 percent. C. by about 18 percent. D. by about 78 percent
Voluntary exchange
A) is the only way to eliminate scarcity. B) is a nonprice rationing device. C) is trading so that the consumer and producers are better off. D) involves no transactions costs.