A consumer's reservation price is the price at which a:
A. consumer prefers to purchase at the lowest observed price rather than to engage in another search.
B. consumer is indifferent between searching again and purchasing at the lowest observed price.
C. producer is indifferent between selling the product and not selling the product.
D. consumer prefers to search rather than purchasing at the lowest observed price.
Answer: B
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If a local fishing club spends time each year cleaning up local streams by removing trash thrown by motorists, efficiency would be improved if
A) motorists were fined and fishing club activities were taxed. B) the fishing club's activities were subsidized. C) the fishing club was taxed. D) motorists were subsidized.
In the late 1990s, the more than expected increases in tax revenues were the result of
a. rapid economic growth. b. rapid increases in the national debt. c. rising rates of inflation, and therefore, nominal incomes. d. rising balance of trade surpluses and the import duties they generated.
Total income from the domestic production of final goods and services equals
a. only household expenditures on these goods and services b. only household and business expenditures on these goods and services. c. only household and government expenditures on these goods and services. d. the expenditures on these goods and services by whoever buys them.
The following diagram shows a market in equilibrium. If there was a $3.00 price floor, 
A. the quantity demanded would be 30 units. B. there would be a surplus of 30 units. C. the quantity demanded would be 65 units. D. there would be a shortage of 30 units.