Mister Jones was selling his house. The asking price was $220,000, and Jones decided he would take no less than $200,000. After some negotiation, Mister Smith purchased the house for $205,000. Jones' producer surplus is
A) $5,000.
B) $15,000.
C) $20,000.
D) Not able to be calculated from the information given.
A
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Which of the following may be used by a plumber's union or a medical professional association to restrict membership?
a. all of the following are correct b. long apprenticeship periods c. difficult qualification exams d. stringent education standards e. high initiation fees
"We lose more by letting the company fail than by having the government save it." This was most likely said by an economist who believes that
A) crowding out is complete. B) bailouts are sometimes necessary. C) the tax multiplier is larger than the government spending multiplier. D) the AS curve is vertical. E) the AS curve is upward-sloping.
Keynesian economists believe:
A. government policies do not affect economic activity. B. most government policies would probably make things worse. C. governments can implement policy proposals that can positively impact the economy. D. the economy ought to be left to market forces.
The yield on a 30-year U.S. Treasury security is 6.5%; the yield on a 2-year U.S. Treasury bond is 4.0%. This data indicate:
A. the yield curve is upward sloping. B. that people expect inflation to decrease in the future. C. the yield curve is flat since the risk premium needs to be added for longer maturities. D. the yield curve is downward sloping.