Andrew wishes to buy a watch and is willing to pay $300 . Spartan Watch Co sells the watch for $350 . Andrew will _____
a. purchase the watch from this shop as his opportunity cost is negative
b. be indifferent between purchasing the watch and not purchasing the watch
c. not purchase the watch as his consumer surplus is negative
d. purchase the watch as the marginal social benefit from the watch is positive
c
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What is the value of marginal profit at the profit-maximizing output?
What will be an ideal response?
If a state government wants to collect the maximum tax revenue from a unit excise tax, which of the following would they tax?
A) cigarettes B) beef hamburgers C) luxury cars D) concert t-shirts
Assume that the central bank sells government securities in the open market. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and reserve-related (central bank) transactions in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium
a. The real risk-free interest rate falls and reserve-related (central bank) transactions becomes more negative (or less positive). b. The real risk-free interest rate remains the same and reserve-related (central bank) transactions becomes more negative (or less positive). c. The real risk-free interest rate and reserve-related (central bank) transactions remain the same. d. The real risk-free interest rate rises and reserve-related (central bank) transactions remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Which equation is used by a manager when considering total cost?
A) total costs (TC) = consumption (C) + investment (I) + government (G) B) total costs (TC) = average fixed costs (AFC) + number of workers C) total costs (TC) = average total costs (ATC) D) total costs (TC) = total fixed costs (TFC) + total variable costs (TVC)