If a buyer's reservation value for a good is $15 and the price at which he purchases the good is $8, his consumer surplus is:
A) $7.
B) $1.8.
C) -$7.
D) $120.
A
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Which of the following is an example of opportunity cost not measured by money cost?
A. The time spent eating a business lunch at a restaurant B. The time spent preparing a meal eaten at home C. The time spent studying to obtain an “A” in economics D. The time spent repairing a car in one’s own garage E. All of the responses are correct.
Assuming the inverse demand function for good Z can be written as P = 90 - 3Q, when P = 20, the point price elasticity of demand is equal to (approximately):
A) -0.22. B) -0.29. C) -0.67. D) -4.5.
A major contributor to the slowdown in U.S. labor productivity during the 1973-1995 period was
a. capital spending. b. technological change. c. labor force growth. d. investment spending.
Distinguish between the short run and the long run. In the short run, ______, whereas in the long run ______.
a. some inputs are variable because they can be altered quickly; all inputs are fixed b. some inputs are fixed because they cannot be altered quickly; all inputs are variable c. fixed inputs can be adjusted as production increases; all inputs can be altered d. inputs cannot be varied; some inputs are fixed and cannot be altered