Consumer surplus is the:
A) difference between the buyer's reservation value and the price he actually pays.
B) product of a buyer's reservation value and the price he actually pays.
C) sum of a buyer's reservation value and the price he actually pays.
D) ratio of a buyer's reservation value to the price he actually pays.
A
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What does it mean for a good to be nonexcludable?
What will be an ideal response?
With a 10% reserve requirement ratio, a $100 deposit into New Bank means that the maximum amount New Bank could lend is
A) $90. B) $100. C) $10. D) $110.
When the dollar strengthens,
A) exports will increase and U.S. consumers benefit. B) imports will increase and U.S. consumers benefit. C) exports will decrease and U.S. exporters benefit. D) exports will increase and U.S. exporters gain.
Which of the following statements is true?
A) If the price of a good is lowered and total revenue decreases, demand is elastic. B) If the price of a good is raised and total revenue does not change, demand is perfectly elastic. C) If the price of a good is raised and total revenue increases, demand is inelastic. D) If the price of a good is lowered and total revenue increases, demand is inelastic.