Lucinda buys a new GPS system for $250. She receives consumer surplus of $75 from the purchase. What value does Lucinda place on her GPS system?
A) $75 B) $175 C) $250 D) $325
D
You might also like to view...
Answer the following statement(s) true (T) or false (F)
1. A non-congested toll road is an example of a good that is excludable, but not rivalrous in consumption. 2. Public goods can frequently be provided by private action when the resulting benefits are widespread. 3. All economists agree that a public good is one the is nonrivalrous and nonexcludable. 4. When a public goods increases the desirability of living in a certain area, benefits tend to be captured entirely by an increase in land values. 5. In a Clarke tax scheme, the amount of tax that a person pays depends, in part, on his revealed preference for the public good.
What benefits are to be gained from countries producing according to the law of comparative advantage? What if a country is absolutely more productive in all goods?
The Interstate Commerce Commission (ICC) was established in 1887 to regulate:
A. banking. B. railroads and all surface transportation. C. nationwide advertising. D. interstate sales of food and drugs.
The total burden of a tax is $10,000 and the tax revenue from this tax is $8,000. The excess burden of this tax is
A. $2,000. B. $8,000. C. $10,000. D. $18,000.