Kurt Gerdenich receives a consumer surplus while buying eggplants at the farmer's market if
a. the value he places on the eggplants is less than their price
b. he gets a higher total utility from buying eggplants than from buying any other good
c. the price of eggplants is less than the price of other goods that he values the same as eggplants
d. only a few eggplants are available for sale
e. the value he places on eggplants is greater than their price
E
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What does NOT appear on the asset side of a bank's balance sheet?
A. required reserves
B. checkable deposits
C. loans
D. excess reserves
Identify the most likely impact of a decrease in the wealth of consumers in an economy, other things remaining constant
a. A leftward shift of the aggregate supply curve b. A leftward shift of the aggregate demand curve c. An upward movement along the aggregate demand curve d. A downward movement along the aggregate demand curve e. A steeper aggregate supply curve
The price of a shirt is $20. Charlie can produce a shirt at a marginal cost of $10, Mac can produce a shirt for $18, and Dennis can produce a shirt for $22
For a shirt, Deandra has a marginal benefit of $25, Frank has marginal benefit of $20, and Artemis has a marginal benefit of $18. Which of the following statements is correct? A) The sum of consumer surplus is $5 and the sum of producer surplus is $12. B) The sum of consumer surplus is $12. C) Only Frank and Artemis will purchase a shirt. D) Only Dennis will produce a shirt. E) The sum of producer surplus is $10.
If the yield curve slope is flat for short maturities and then slopes steeply upward for longer maturities, the liquidity premium theory (assuming a mild preference for shorter-term bonds) indicates that the market is predicting
A) a rise in short-term interest rates in the near future and a decline further out in the future. B) constant short-term interest rates in the near future and further out in the future. C) a decline in short-term interest rates in the near future and a rise further out in the future. D) constant short-term interest rates in the near future and a decline further out in the future.