Suppose that Tom bought a bike from Helen for $195. If Helen's reservation price was $185, and Tom's reservation price was $215, the buyer's surplus from this transaction was:
A. $20
B. $195
C. $215
D. $10
Answer: A
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Economists call a game that is played more than once:
A. a repeated game. B. collusion. C. a commitment strategy. D. cooperative price play.
Demand for farm products, in general, is said to be relatively price inelastic. Therefore, U.S. farm policy, which is designed to keep farm prices above equilibrium, should
a. decrease farm incomes b. increase farm incomes c. not affect farm incomes d. reduce the number of farmers e. lower food prices for consumers
When income rises, total expenditures remain constant
a. True b. False Indicate whether the statement is true or false
Productivity growth in the labor-intensive service sector tends to lag behind manufacturing productivity growth. This phenomenon has become known as _______________.
Fill in the blank(s) with the appropriate word(s).