Refer to Scenario 13.1. If your negotiated price had been $350 instead of $250, the sum of consumer surplus and producer surplus would be:
A) less than what would have accrued at the $250 price.
B) the same as what would have accrued at the $250 price.
C) more than what would have accrued at the $250 price.
D) None of the above is necessarily correct.
B
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This Application addresses the economic concept of
A) procyclical investment. B) financial intermediaries. C) present value. D) the multiplier-accelerator model.
If the demand for a good increases when people's incomes increase,
A) the good is an inferior good. B) the law of demand is violated. C) the good's demand curve must be slope upward. D) the good is a normal good. E) the good is a substitute good for an inferior good.
Suppose a family has saved enough for a 10 day vacation (the only one they will be able to take for 10 years) and has a utility function U = V1/2 (where V is the number of healthy vacation days they experience). Suppose they are not a particularly healthy family and the probability that someone will have a vacation ruining illness (V = 0) is 30%. What is the expected value of V?
a. 10 b. 7 c. 3 d. 0
According to the U.S. Bureau of Economic Analysis, by the third quarter of 2014, U.S. investors had accumulated ________ of foreign assets.
a. $24.6 billion b. $2.46 trillion c. $24.6 trillion d. $246 trillion