A consumer's willingness to pay:
A. is his or her reserved minimum bid-price.
B. is the maximum price that a buyer would be willing to pay for a good or service.
C. must always equal the seller's willingness to sell.
D. is the minimum price that a buyer would be willing to pay for a good or service.
Answer: B
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If d is the depreciation rate and K is the capital stock, the amount of investment required to keep the economy in a steady state is given by:
A) I = d - K. B) I = d + K. C) I = d × K. D) I = d/K.
Although he is very poor, Al plays the million-dollar lottery every day because he is certain that one day he will win. Al makes this calculation based upon
A) the frequency of past outcomes. B) subjective probability. C) knowledge of all possible outcomes. D) tossing a coin.
If the price level increases by more than expected, output can be expected to decrease as a result
a. True b. False Indicate whether the statement is true or false
For a monopoly producing any output level greater than one, the average revenue curve:
A. lies above the demand curve. B. lies below the demand curve. C. lies above the marginal revenue curve. D. is the same as the marginal revenue curve.