The minimum acceptable price for a product that producer Sam is willing to receive is $15. The price he could get for the product in the market is $18. How much is Sam's producer surplus?
A. $3
B. $33
C. $45
D. $270
A. $3
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Assuming no change in the nominal exchange rate, how will a decrease in the price level in the United States relative to France affect the real exchange rate between the two countries? (Assume the United States is the "domestic" country.)
A) The real exchange rate will fall. B) The real exchange rate will be unaffected. C) The real exchange rate will rise. D) The impact on the real exchange rate cannot be predicted.
According to the search model, we should expect greater price dispersion for a given good
a. if the good is a luxury b. if the good is inferior c. if there is much common knowledge about the good d. during a recession e. if a computerized search service is offered
If a pair-wise majority vote was held, the voters' preferences are shown in the table, and Bob is setting the agenda for votes, which pair will he put up for vote first?
A. Public zoo and public parks
B. Public transportation and public zoo
C. Public parks and transportation
D. It will not matter, as it will not affect the outcome of the voting.
In a competitive market, a. demand will always reflect all spillover costs
b. demand will always reflect all spillover benefits. c. supply will always reflect all spillover costs. d. none of the above are true.