Refer to Figure 4-3. If the market price is $3.00, what is the consumer surplus on the first ice cream cone?
A) $0.50 B) $1.00 C) $5.50 D) $9.00
A
You might also like to view...
Which of the following is true about the Federal Reserve and its ability to prevent recessions? The Federal Reserve
A) can fine tune the economy and realistically hope to keep the economy from experiencing recessions. B) cannot realistically fine tune the economy and has little to no effect on the magnitude and length of recessions. C) does not try to eliminate recessions, but instead focuses on preventing inflation. D) cannot realistically fine tune the economy, but seeks to keep recessions shorter and milder than they would otherwise be.
It is estimated that a 10 percent inflation in the United States would bear a shoe-leather cost of approximately ________ percent of GDP
A) 15 B) 6 C) 2 D) 0.25
From 2004 to 2006, the European Union budget was ________, private saving was ________ domestic investment, and foreign lending ________
A) balanced, roughly equal to, negligible B) balanced, less than, substantial. C) surplus, greater than, negligible D) in deficit, greater than, negligible
A change in which of the following will have a direct effect on the amount of money individuals wish to hold in the current period?
A) the current nominal interest rate B) the current real interest rate C) the expected future nominal interest rate D) the expected future real interest rate E) all of the above