If you are willing to sell your lawn mower business for $355,000 and someone offers you $420,000 for it, this transaction will generate:
a. There is no surplus created
b. $65,000 worth of seller surplus and unknown amount of buyer surplus
c. $30,000 worth of buyer surplus and $35,000 of seller surplus
d. $65,000 worth of buyer surplus and unknown amount of seller surplus
b
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Marginal private cost
A) is always zero if there is an external cost. B) equals the marginal social cost only if the marginal external cost is positive. C) is the cost of producing an additional unit of a good or service that is paid by the producer of that good or service. D) the cost of producing an additional unit of a good or service that falls on people other than the producer of that good or service. E) the cost of producing an additional unit of a good or service that is paid by the entire society.
According to Tobin's q theory, when q is ________, firms will not purchase new investment goods because the market value of firms is ________ relative to the cost of capital
A) low; low B) low; high C) high; low D) high; high
During the period of October 1979 to October 1982; the FOMC's primary operating target resulted in:
A. the most stable period for the federal funds rate in history. B. the federal funds rate experiencing high volatility. C. the federal funds rate dropping to 2 percent (an all-time low to that date) and not rising above 3 percent. D. reserves being highly volatile.
Which of the following statements is TRUE about the market demand curve for labor?
A. The market demand curve is the sum of the individual firm's demand curve. B. The market demand curve depends upon labor productivity, the wage rate and the price of the final product. C. The market demand curve shows the quantities of labor demanded by all firms in the industry at various marginal products. D. The market demand curve will be perfectly inelastic since firms need labor.