The latest model car in the dealer's showroom has a sticker price of $35,000.00. Fred, the shopper, has decided that he would pay no more than $32,000.00 for the car
After two hours of bargaining with the saleswoman, Fred actually purchases the car for $31,000.00. Fred, therefore, has obtained a consumer surplus of A) $35,000.00.
B) $32,000.00.
C) $4,000.00.
D) $1,000.00.
D
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A single-price monopolist will maximize profit by producing so that marginal revenue
A) exceeds marginal cost. B) is less than marginal cost. C) equals marginal cost. D) equals price.
One thing that distinguishes normative economic principles from positive economic principles is that:
A. normative principles tell us how people will behave, and positive principles tell us how people should behave. B. normative principles are pessimistic and positive principles are optimistic. C. normative principles tell us how people should behave, and positive principles tell us how people will behave. D. normative principles reflect social norms, and positive principles reflect universal truths.
If nominal GDP is 8,100 billion florins and the money supply is 900 billion florins, the velocity of circulation is
A. 900.0. B. 90.0. C. 81.0. D. 9.0. E. 8.1.
Figure 18.1Refer to Figure 18.1. Mutually beneficial terms of trade between the United States and Canada would be:
A. 1 bicycle for 8 hang gliders. B. 1 hang glider for 3 bicycles. C. 1 hang glider for 1/4 of a bicycle. D. 1 hang glider for 1/2 of a bicycle.