What happens to consumer surplus as price falls along a given demand curve?
a. It always increases.
b. It always decreases.
c. It never changes.
d. It increases only if price increases just a little.
e. It depends on the elasticity of demand and supply.
A
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If you make dinner for yourself,
A) the market value of your dinner is added to GDP. B) your service in preparing the meal is valued at a cook's wage and added to GDP. C) none of what you bought to prepare for dinner is included in GDP. D) only the market value of ingredients that you purchased this year is added to GDP. E) the difference between the cost of the ingredients that you purchased this year and the market value of the dinner is added to GDP.
If the demand and supply curves are described by the following equations P = a - bQ and P = c + dQ, respectively, the equilibrium price is P* = (ad + bc) / (b + d)
Indicate whether the statement is true or false
Moral hazard:
A. is about the unobserved actions of people. B. is about the unobserved characteristics of people. C. occurs before the parties have entered into an agreement. D. None of these statements is true.
What do “wages” and “wage rates” mean in economics? How do they differ from labor earnings?
What will be an ideal response?