Rosa is willing to pay $200 for the iPhone, but the actual price is $400. This means
A. Rosa will enjoy a consumer surplus of $200 if she buys the iPhone.
B. The iPhone is overpriced.
C. Rosa will buy this product but will not receive any consumer surplus.
D. Rosa will not buy an iPhone.
Answer: D
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Which of the following best describes the vicious cycle of poverty? a. Rich countries eventually decline because its citizens become lazy
b. Poor countries eventually improve through investment in education, infrastructure, and capital accumulation. c. Rich countries stay rich through continued high levels of investment in education, infrastructure, and capital accumulation. d. Poor countries stay poor because they cannot afford to invest in education, infrastructure, and capital accumulation.
Which of the following is true about the U.S. federal government budget for the year 1998?
A. Federal government receipts were greater than federal government spending for the first time in a generation. B. The U.S. Constitution was amended to require a balanced federal budget. C. Federal government outlays were greater than federal government receipts for the first time in a generation. D. The federal budget deficit was the largest in history.
The opportunity cost of attending college is
A) the money one spends on college tuition, books, and so forth. B) the highest valued alternative one forfeits to attend college. C) the least valued alternative one forfeits to attend college. D) equal to the salary one will earn when one graduates from college.
When successfully implemented, expansionary fiscal policy will cause
A. an upward movement along the aggregate demand curve. B. a leftward shift of the aggregate demand curve. C. a downward movement along the aggregate demand curve. D. a rightward shift of the aggregate demand curve.