Mr. Anderson received a producer surplus of $1,000 when he sold his watch. If the market price of the watch was $3,000 . he was willing to sell the watch for _____
a. $4,000
b. $2,000
c. $1,000
d. $3,000
b
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The population of a small town is 5,000. There are 4,000 people in the labor force, and 3,000 people are employed. The unemployment rate equals
A) 25 percent. B) 60 percent. C) 75 percent. D) an undetermined amount given the lack of information.
Would the Waxman-Markey law achieve production efficiency?
What will be an ideal response?
Because of asymmetric information, the failure of one bank can lead to runs on other banks. This is the
A) too-big-to-fail effect. B) moral hazard problem. C) adverse selection problem. D) contagion effect.
What is the shape of the marginal revenue curve derived from a linear downward sloping demand curve?
A) Horizontal B) Vertical C) U-shaped D) Downward sloping, with a constant slope