Lauren and Katy each bought a new bike lock for $20. Both Lauren and Katy would have paid $25 for the lock. Katy's consumer surplus equaled
A) $10.
B) $40.
C) $5.
D) $20.
E) $50.
C
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Disposable income equals aggregate income
A) minus saving and minus net taxes. B) minus saving. C) minus net taxes. D) plus net taxes. E) plus saving minus net taxes.
For a product with a constant or gently increasing opportunity cost of producing additional units, as more is produced, we expect that
A) demand is price elastic. B) supply is price elastic. C) demand is price inelastic. D) supply is price inelastic. E) demand is unit elastic.
By definition, currency depreciation occurs when the value of
A) all currencies fall relative to gold. B) one currency falls relative to another currency. C) one currency rises relative to another currency. D) gold falls relative to the value of currencies.
When economists speak of "marginal", they mean
a. Opportunity b. Scarcity c. Incremental d. Unimportant