In the above figure, if a single-price monopolist charges the profit-maximizing price, the triangle dce represents
A) consumer surplus.
B) producer surplus.
C) deadweight loss.
D) marginal revenue.
C
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When money is used to compare the relative price of a burrito and a taco, money is being used as a
A) medium of exchange. B) store of value. C) measurement of inflation. D) unit of account. E) token of bartering.
Individuals derive utility from picnics, p, and kayak trips, k. Assuming that an individual's utility is U(p,k) = k0.5p0.5 and income is $100, what is the marginal rate of substitution (MRS) between picnics and kayak trips?
A) MRS = 1. B) MRS = -1. C) MRS = - D) There is no substitution because picnics and kayak trips are perfect complements.
Penalties on sellers and buyers
What will be an ideal response?
Refer to the information provided in Figure 29.1 below to answer the question(s) that follow.
Figure 29.1Refer to Figure 29.1. Suppose it takes policy makers from time t2 to time t3 to see that the economy has started contracting. This is an example of
A. a recognition lag. B. an implementation lag. C. a policy lag. D. a response lag.