If DeShawn only pays $25,000 to purchase a new car even though he would have been willing to pay as much as $35,000 for the car, this indicates that
a. DeShawn is an irrational consumer.
b. The seller earned a $10,000 profit on the sale of the car.
c. DeShawn reaped $10,000 of consumer surplus from the transaction.
d. The seller received $10,000 worth of producer surplus on the transaction.
C
You might also like to view...
Opportunity cost is always measured in dollar terms, rather than in terms of real goods and services
a. True b. False
Other things the same, an increase in the interest rate makes the quantity of loanable funds supplied
a. rise, and investment spending rise. b. rise, and investment spending fall. c. fall, and investment spending rise. d. fall, and investment spending fall.
Which of the following statements represents a correct and sequentially accurate economic explanation?
A) The (U.S.) dollar appreciates, net exports rise, total expenditures on goods and services rises, AD rises, and the AD curve shifts rightward. B) The interest rate falls, investment rises, total expenditures on goods and services rises, AD falls, and the AD curve shifts leftward. C) Wealth increases, consumption rises, total expenditures on goods and services rises, AD falls, and the AD curve shifts rightward. D) (Business) expectations about future sales become more positive, investment rises, total expenditures on goods and services rises, AD rises, and the AD curve shifts rightward. E) Foreign real national income rises, net exports rise, total expenditures on goods and services falls, AD rises, and the AD curve shifts rightward.
Discretionary funds are typically used by the Executive Branch and Congress for activist fiscal policies.
Answer the following statement true (T) or false (F)