Creating a market that was previously "missing":
A. redistributes surplus from one market to the one that was previously missing.
B. redistributes surplus from seller to buyer.
C. redistributes surplus from buyer to seller.
D. creates more total surplus.
Answer: D
You might also like to view...
What two factors are the keys to determining labor productivity?
A) technology and the quantity of capital per hour worked B) the growth rate of real GDP and the interest rate C) the average level of education of the workforce and the price level D) the business cycle and the growth rate of real GDP
If Alan Shaw reduces his work hours when his salary increases, then
A) the substitution effect of his salary increase dominates the income effect. B) leisure is an inferior good to Alan. C) the income effect of his salary increase dominates the substitution effect. D) the income effect of his salary increase is completely offset by the substitution effect.
Which of the following is true with regard to the supply of money?
A) an open market sale of government securities will increase liquidity B) an open market purchase of government securities will decrease liquidity C) liquidity and the money supply are directly related D) all of the above E) none of the above
Suppose when the price of calculators is $18, the quantity demanded is 90, and when the price is $22, the quantity demanded drops to 70. Using the mid-point method, the price elasticity of demand is:
A. 1.25 B. 25 percent C. 20 percent D. 25