You have just bought a used car, and drive away satisfied that you've made a good deal on the purchase. What would an economist say about your "gain" on the deal?
a. Your gain has clearly meant that the seller lost on the deal.
b. The seller has clearly gained, and you have actually lost on the deal.
c. Both you and the seller have gained something.
d. If your gain is too large, then the deal should be re-negotiated.
e. If the seller's loss is too large, then the deal should be re-negotiated.
c
You might also like to view...
Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
Use the following graph, which shows the supply and demand curves for dollars in the pound/dollar market, to answer the next question.
Assume that D1 and S1 are the initial demand for and supply of dollars. Suppose that Britain's demand for dollars increases from D1 to D2. If the British government wishes to fix the exchange rate at the initial level, then it would be faced with a problem of ________.
A. rationing Q2 dollars among British importers who would like to acquire Q3 dollars B. rationing Q3 dollars among British importers who would like to acquire Q2 dollars C. deteriorating terms of trade D. a rise in the pound price of dollars
Refer to Table 4-4. The table above lists the highest prices three consumers, Curly, Moe, and Larry, are willing to pay for a bottle of champagne. If the price of the champagne falls from $24 to $14
A) consumer surplus will increase from $80 to $95. B) consumer surplus increases from $32 to $53. C) Larry and Moe will receive more consumer surplus than Curly. D) Curly will buy four bottles; Moe will buy two bottles, and Larry will buy one bottle.
Which of the following is known to occur when the consumer equilibrium is achieved for someone at a carnival?
a. He has ample money in his carnival budget for additional rides. b. The marginal utility of the last ride he took on the roller coaster, a $7 ride, is equal to the marginal utility of the last ride he took on the hammerhead, a $3 ride. c. The marginal utility per dollar spent on the last roller coaster ride he took is equal to the marginal utility per dollar spent on the last hammerhead ride he took. d. He continued to ride the roller coaster until his marginal utility was driven down to zero, and then he switched to the hammerhead and rode that until he became sick to his stomach. Thus he had to leave the carnival before spending all his budget, and missed seeing the man shot out of the cannon.