Consumer surplus is the amount a buyer actually has to pay for a good minus the amount the buyer is willing to pay for it
a. True
b. False
Indicate whether the statement is true or false
False
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Use the figure below to answer the following question.
An increase in supply would best be reflected by a change from
A. point 2 to point 5. B. point 1 to point 3. C. point 1 to point 2. D. point 3 to point 4.
Amusement parks often offer coupons to the local market that are not available to tourists. This is an example of
a. Direct discrimination scheme b. Indirect discrimination scheme c. Both of the above d. None of the above
To achieve a high standard of living, a nation should: a. increase welfare payments to the poor
b. use less capital and more labor in the production process. c. promote economic growth. d. increase the tax deduction for child dependents.
Alicia is a vegetarian, so she does not eat beef. That is, beef provides no additional utility to Alicia. She loves potatoes, however. If we illustrate Alicia's indifference curves by drawing beef on the horizontal axis and potatoes on the vertical axis, her indifference curves will
a. slope downward. b. be vertical straight lines. c. slope upward. d. be horizontal straight lines.