When you purchase school supplies at the book store using cash, you are using money as a medium of exchange
a. True
b. False
Indicate whether the statement is true or false
True
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What types of goods have downward-sloping Engel curves?
a. Normal goods only. b. Inferior goods only. c. Giffen goods only. d. All types of goods.
Nonexcludability is a feature of
A) goods but not services. B) all nonrival goods. C) goods with an external cost. D) public goods.
Consider a country that produces only two goods: pineapples and tractors. Suppose it is possible for this country to increase its production of pineapples without producing fewer tractors. In this case, its current output combination is inefficient
Indicate whether the statement is true or false
A market has four individuals, each considering buying a grill for his backyard. Assume that grills come in only one size and model. Abe considers himself a grill-master, and finds a grill a necessity, so he is willing to pay $400 for a grill. Butch is a meat-lover, honing his grilling skills, and is willing to pay $350 for a grill. Collin just met the girl of his dreams, and she loves a good grilled steak, so in his effort to impress her he is willing to pay $320 for a grill. Daniel loves grilled shrimp and thinks it might be cheaper in the long run if he buys a grill instead of eating out every time he wants grilled shrimp, so he is willing to pay $200 for a grill.
If the market price of grills increases from $310 to $350, given the scenario described: A. total consumer surplus would fall by $120. B. total consumer surplus would fall by $90. C. Collin and Butch would experience a decrease in consumer surplus, but Abe's consumer surplus would rise. D. Collin would experience a decrease in consumer surplus, but Abe and Butch would experience a rise in consumer surplus.