John is willing to sell his car for $3,000 . If the market price of the car is $5,000 . the producer surplus that John will receive is _____
a. $2,000
b. $3,000
c. $5,000
d. $8,000
a
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If a competitive firm is operating in short run equilibrium and then its fixed costs fall by 40 percent, it should: a. use more labor and less capital in current production. b. not change its output
c. increase its output. d. decrease its output.
Fiscal policy involves
A. changing the money supply to change aggregate demand. B. printing money, borrowing, or taxing to cover government spending. C. changing government spending or taxes to increase aggregate demand. D. state and local authorities, not the federal government.
Exhibit 14-2 Cigarette smoking dataJack enjoys smoking, while Jill fears that second-hand smoke will shorten her life. The following table shows the value Jack places on each cigarette he smokes, and the value Jill places on her shortened life. Use the table to answer the following question(s): Quantityof cigarettes Total value to Jackof cigarettes Days of life lost Total value to Jillof days lost 1 $ 50 1 $ 30 2 90 2 60 3 120 3 90 4 140 4 120 5 150 5 150 As shown in Exhibit 14-2, what is the socially efficient number of cigarettes?
A. 0. B. 1. C. 3. D. 5.
The degree to which an asset can be acquired or disposed of without much danger of any intervening loss in nominal value is known as
A. liquidity. B. a time deposit. C. transaction deposits. D. the opportunity cost of holding cash.