When someone's willingness to pay is the same as the actual price paid for an item:
A. the individual's surplus is zero.
B. the individual will not purchase the item.
C. surplus cannot be maximized.
D. All of these are true.
Answer: A
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A problem with using fiscal policy to fine-tune the economy is that
A) agreeing on the appropriate fiscal policy is time consuming. B) fiscal policy impacts the economy too fast. C) fiscal policy impacts only urban areas of the nation. D) fiscal policy impacts only the largest states in the nation.
Refer to the accompanying table. If the price of Good A is $2 and the price of Good B is $6, then the rational spending rule is satisfies when the consumer purchases ________ units of Good A and ________ units of Good B.UnitsMarginal Utilityof Good AMarginal Utilityof Good B1304022733315244814
A. 4; 3 B. 1; 1 C. 3; 2 D. 2; 1
Refer to the above figures. Which panel(s) represent the effect of a decrease in labor productivity?
A. Panels B and D only B. Panels A and C only C. Panel A only D. Panel D only
If technological change increases the profitability of new investment for firms, then the ________ curve for loanable funds will shift to the ________ and the equilibrium real interest rate will ________
A) supply; right; fall B) supply; left; rise C) demand; right; rise D) demand; left; fall