When Bob's willingness to pay for a cup of coffee is $1, and the price of a cup of coffee is $1:
A. Bob is indifferent about purchasing the coffee.
B. Bob will get no surplus by purchasing the coffee.
C. Bob will get the same surplus whether he purchases the coffee or not.
D. All of these are true.
D. All of these are true.
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If you want to earn a high income you should figure out what others value because
a. others will be willing to pay attractive prices for things they value. b. you will be able to gain at the expense of others. c. you will not have to compete in the job market. d. you will then be able to charge higher prices than alternative suppliers.
Use the following information to answer the next question.C = A + .75(Y - T)A = $900I = $600G = $400T = $400NX = -$200Suppose the equilibrium level of real GDP is represents full employment. What would be the effect of a tax decrease of $100?
A. There will be an inflationary expenditure gap of $75. B. There will be an inflationary expenditure gap of $100. C. There will be a recessionary expenditure gap of $75. D. There will be a recessionary expenditure gap of $100.
Under a flexible exchange rate system an increase in the value of a currency relative to other currencies is a called a(n) ________ and under a fixed exchange rate system an increase in the official value of a currency is called a(n) ________.
A. depreciation; devaluation B. depreciation; appreciation C. revaluation; appreciation D. appreciation; revaluation
The circular flow diagram includes the following players:
a. government, firms, financial markets, goods markets b. factor markets, goods markets, financial markets, firms c. households, firms, government, rest of the world d. households, factor markets, goods markets, firms