The value to the consumer is
A. the area under the demand curve but above the price line from the origin to the quantity purchased.
B. the area under the supply curve from the origin to the quantity produced.
C. the area under the supply curve but below the price line from the origin to the quantity purchased.
D. the area under the demand curve from the origin to the quantity purchased.
Answer: D
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If Project A has a cost of $5 and provides a benefit of $10, and Project B has a cost of $2 and provides a benefit of $4, then switching from Project A to Project B:
A) increases the net benefit by $3. B) increases the net benefit by $6. C) decreases the net benefit by $6. D) decreases the net benefit by $3.
When the price of apples goes up
A) the quantity of apples demanded will decrease, ceteris paribus. B) the demand for apples will increase, ceteris paribus. C) the quantity of apples demanded will increase, ceteris paribus. D) the demand for apples will decrease, ceteris paribus.
The tables above show the marginal costs and benefits from production of paper. If the market is perfectly competitive and unregulated, the efficient amount of paper will be produced by setting a Pigovian tax of
A) $5 per ton. B) $10 per ton. C) $20 per ton. D) $40 per ton.
Sweden's currency would tend to depreciate if:
a. Sweden's inflation rate rises relative to inflation in the rest of the world. b. the demand for imports by Swedes increases c. real interest rates in Sweden decrease relative to the rest of the world. d. all of the above