Sammy has a drone that he values at $1,500. Frank values the same drone at $1,000. The government offers a subsidy of $800 to the buyers of drones, and Sammy and Frank agree on a price of $1,600. The cooperative surplus for Sammy and Dean will be
A) $200.
B) $300.
C) $600.
D) $800.
B
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An increase in resources available would decrease potential GDP and the long-run aggregate supply curve
Indicate whether the statement is true or false
Which legal claim has a fixed annual coupon payment?
A) common stock B) preferred stock C) bond D) reinvestment
Which of the following examples shows Adam Smith’s “invisible hand”?
a. Millions of people through buying and selling adjust how resources such as steel are used. b. The Federal Trade Commission uses consumer protection laws to adjust resource allocation. c. The five largest banks adjust loan interest rates, which affect the free market. d. Five countries form a trade agreement that spurs the economy in each country.
What is means testing?
What will be an ideal response?