Assume a consumer has a horizontal demand curve for a product. His consumer surplus from buying the product
A) is maximized.
B) can't be calculated.
C) equals zero.
D) Need more information.
C
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Product improvements make it difficult for the statisticians who construct the CPI to distinguish between ________ changes and ________ changes.
A. price; quality B. income; price C. quantity; quality D. quantity; price
Assume that Figure 4-16 shows the supply of soda. An increase in the price of syrup used in the production of soda will shift supply from
A. S1to S2. B. S2to S1. C. S2to S3. D. S1to S3.
An example of "automatic stabilizers" is a rise in ________ causing the budget deficit to ________
A) real GDP, fall B) real GDP, rise C) government expenditures, fall D) government expenditures, rise E) the average tax rate, fall
A local ordinance prohibiting leaf burning is an example of
a. inefficient government b. obligatory controls c. a pollution compensation tax d. the bubble concept e. creating a new property form