The value to the consumer is based upon adding up
A. the most each consumer is willing to pay for a good.
B. the difference between most a consumer is willing to pay for a good and the least a firm is willing to sell the good for.
C. the least a firm is willing to sell the good for.
D. the average of the most a consumer is willing to pay for a good and the least a firm is willing to sell the good for.
Answer: A
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Using the market for loanable funds, which of the following has the potential to raise the real interest rate?
A) an increase in the supply of loanable funds B) an increase in the quantity of loanable funds demanded C) an increase in the quantity of loanable funds supplied D) an increase in the demand for loanable funds
The leading example of sampling schemes in econometrics that do not result in independent observations is
A) cross-sectional data. B) experimental data. C) the Current Population Survey. D) when the data are sampled over time for the same entity.
Refer to the graph below, which shows the market for beef where demand shifted from D1 and D2. The change in equilibrium from E1 to E2 cannot be a result of:
A. Buyers expectations of lower prices for beef in the very near future
B. An increase in the subsidy given to cattle farms
C. A widespread concern about mad-cow disease
D. A decrease in the productivity of cattle farms
Refer to the scenario above. Suppose Edwin consumes the total output produced. What is likely to happen in this case?
A) GDP will remain unchanged. B) GDP will decrease. C) Trade surplus will increase by $200. D) GDP will increase.