Michael values a stainless steel refrigerator for his new house at $3,500, but he succeeds in buying one for $3,000 . Michael's consumer surplus is
a. $500.
b. $3,000.
c. $3,500.
d. $6,500.
a
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The rate of product transformation (RPT) measures the ability of:
a. a consumer to trade one good for another while still maximizing his or her utility. b. a firm to substitute one input for another and still maintain the same production level. c. society to substitute the production of one good for another while still using a fixed supply of inputs efficiently. d. a firm to produce a final good while starting with only natural resources.
Because of specialization and comparative advantage, most people
a. consume only what they produce themselves b. consume the products produced by their family and friends c. consume the products of many other specialists d. do not use money as a medium of exchange e. share whatever they produce
Which of the following is not a function of money?
a. Insurance against unexpected inflation. b. Legal tender. c. Insurance against expected inflation. d. Unvarying unit of value. e. None of the above is a function of money.
Most economists feel that the ability to alter the unemployment rate with fiscal and monetary policies is ______.
a. more limited than previously believed b. more powerful than previously believed c. impossible d. easy