Refer to the figure above. If a price control is imposed at $8, what is the loss in producer surplus?
A) $30
B) $60
C) $90
D) $120
B
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Refer to Figure 3-6. The figure above represents the market for coffee grinders. Assume that the price of coffee grinders is $50. At this price,
A) there is a surplus equal to 90 coffee grinders that will be eliminated when the price falls to $25. B) the supply exceeds the demand by 90. Some producers will have an incentive to offer to sell coffee grinders at a lower price. C) there is a surplus equal to 90 coffee grinders and the price of coffee grinders will fall until demand is equal to supply. D) the quantity supplied exceeds the quantity supplied by 100. The price will eventually fall to $25 where quantity demanded will equal quantity supplied.
Actions to lower the probability of a bad outcome ________ its expected cost and these actions are ________.
A) increase; inexpensive B) decrease; costly C) decrease; inexpensive D) increase; costly
The supply curve for funds
a. is generally positively sloped. b. depends upon people's savings plans. c. is a function of the interest rate. d. All of the above are correct.
Which of the following is an example of signaling?
a. Pat is considering the purchase of a used car. Before making the purchase he has the car checked by an auto mechanic. b. Zach is applying for a new life insurance policy. Before writing the policy, the insurance company requires Zach to be examined by a doctor. c. Denise is applying for a new job. Before hiring her, the firm requires Denise to take a drug test. d. Marcus is planning to ask for Chaquila's hand in marriage. Before asking her, he buys her a box of her favorite chocolates and takes her to dinner at her favorite restaurant.