Marti wanted to replenish her wardrobe and went to the $30 rack at K-Mart. There she saw three stylish dresses. She was delighted because she would have been willing to pay $40 for the first dress, $35 for the second dress, and $30 for the third dress. She bought all three. Which of the following is correct?
a. Only the third dress sold for its price.
b. The consumer surplus she derived was $90.
c. The consumer surplus she derived was $105.
d. The consumer surplus she derived was $15.
e. The consumer surplus she derived was zero because, for the third, price was exactly what she was willing to pay.
D
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Lucinda is deciding whether to enroll in an art school or a culinary school. The art school will cost $38,000 and the culinary school will cost $52,000
Lucinda estimates that the benefits from attending the art school will be $75,000 and the benefits from attending the culinary school will be $88,000. Based on these numbers, in which school should Lucinda enroll?
If the nominal rate of interest on a bond was 5 percent, the inflation rate was 3 percent and an individual was in a 25-percent tax bracket, the after-tax real return on the bond would be equal to
a. 2 percent. b. 2.5 percent c. .5 percent.. d. -.5 percent. e. none of the above.
Which of the following is an example of a fixed cost for a fishing company?
a. the cost of hiring a fishing crew b. the fuel costs of running the boat c. the monthly loan payment on the boat d. the supply of nets, hooks, and fishing lines e. the bait
Which of the following countries has experienced the worst hyperinflation since 2005?
a. Brazil b. Russia c. China d. Zimbabwe