If the most someone is willing to pay for an airline ticket to Las Vegas is $300 and the market price of the ticket is $200, then this buyer will get consumer surplus of
A. $100.
B. $200.
C. $300.
D. $500.
Answer: A
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It is a mistake to calculate the cost per mile of owning a car because doing so implies
A) additional driving will lower the cost of owning a car. B) future fuel and maintenance costs cannot be predicted. C) marginal costs are the only relevant costs. D) opportunities will not arise to sell the car.
Our ______ summarizes our transactions involving the international exchange of goods and services, investment income, and other miscellaneous transactions.
Fill in the blank(s) with the appropriate word(s).
An exclusive deal is
A) always illegal. B) welfare reducing. C) one where a firm will only sell to a customer if the customer agrees not to buy anything from the firm's rivals. D) All of the above.
When consumers and firms are driven by rational self-interest and they seek to maximize utility and profit respectively, then a parallel assumption would be that elected officials attempt to:
a. best serve the public interest. b. maximize hours worked. c. maximize their political support. d. fight for the oppressed and the disenfranchised, regardless of the political consequences.