If Jenna buys a CD at a price of $10, she gets a consumer surplus of $20 . This means she
a. does not have enough money to buy the CD
b. will not buy the CD since marginal utility is not high enough
c. was willing to pay as much as $30 for the CD
d. was willing to pay as much as $20 for the CD
e. will have $30 left over after she buys the CD
C
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In the market for euros, if the current exchange rate is below the equilibrium rate,
a. the quantity supplied and the quantity demanded for euros are equal. b. there is an excess supply of euros and the exchange rate will fall. c. there is an excess demand for euros and the exchange rate will rise. d. the exchange rate will neither rise nor fall. e. there is an excess demand for euros and the exchange rate will fall.
Refer to the table shown. From this table we can conclude that:Cost (in euros) of producing wine and an electric generator FranceGermanyWine1020Electric Generator10,00030,000
A. Germany has a comparative advantage in wine and France has a comparative advantage in electric generators. B. France has a comparative advantage in wine and Germany has a comparative advantage in electric generators. C. France has a comparative advantage in both goods. D. Germany has a comparative advantage in both goods.
Refer to the accompanying table. The law of diminishing marginal utility:UnitsMarginal Utilityof Good AMarginal Utilityof Good B1304022733315244814
A. applies to both Good A and Good B. B. applies to Good A but not Good B. C. applies to Good B but not Good A. D. does not apply to either Good A or Good B.
In which case would the quantity of money demanded by the public tend to increase by the greatest amount?
A. The interest rate decreases and nominal GDP increases. B. The interest rate decreases and nominal GDP decreases. C. The interest rate increases and nominal GDP decreases. D. The interest rate increases and nominal GDP increases.