A college student decides to spend the afternoon watching three movies rented from Red Box. The cost of each movie is $1. The student was willing to pay $4 to rent each of the first two movies and $2 to rent the third movie. What was the marginal benefit received by the student when renting the 2nd movie?
A. $1
B. $8
C. $4
D. $2
C. $4
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The figure above shows the market for brooms. Which of the following could lead to the production of fewer than 600 brooms?
A) a monopoly B) a deadweight loss C) subsidies D) an external cost E) a big tradeoff
From 1900 to 1960, Latin America's real GDP grew
A) slower than Europe, Asia, and the U.S. B) as fast or faster than Europe, Asia, and the U.S. C) faster than Europe and the U.S. but slower than Asia. D) faster than Asia, but slower than Europe and the U.S.
Market power may result from all of the following except
A. Patents and copyrights. B. Efficiencies of large-scale production. C. Control of resources. D. Low barriers to entry.
The idea that aggregate price levels do not affect real outcomes in the economy is called the:
A. aggregate price theory. B. real output theory. C. neutrality of money. D. neutrality of prices.