Amanda buys a ruby for $330 for which she was willing to pay $340. The minimum acceptable price to the seller, Tony, was $140. Tony experiences a
A. consumer surplus of $670 and Amanda experiences a producer surplus of $470.
B. producer surplus of $190 and Amanda experiences a consumer surplus of $10.
C. consumer surplus of $10 and Amanda experiences a producer surplus of $190.
D. producer surplus of $470 and Amanda experiences a consumer surplus of $670.
Answer: B
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Sally leaves her $24,000 secretarial position with a company and invests her savings of $15,000 (on which she was earning 6 percent interest) in her own Ready Sec agency. After expenses, her net income was $28,900. Her economic profit was
A. $4,900. B. $4,000. C. $28,900. D. ?$10,100.
During the debate on the stimulus package in 2009 and 2010, Republicans argued in favor of increased government spending as opposed to tax cuts based in part on the impact government spending would have on aggregate supply
a. True b. False Indicate whether the statement is true or false
In this graph, more government purchases and/or lower taxes will move the equilibrium ______.
a. off the LRAS curve
b. off the SRAS curve
c. from point e1 to point E2
d. from point E2 to point e1
If inflation is a threat, the Fed is likely to engage in a contractionary monetary policy.
a. true b. false