Isabella buys a new camera for $80 . She receives consumer surplus of $35 on her purchase if her willingness to pay is
a. $35.
b. $45.
c. $80.
d. $115.
D
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Suppose a monopolist offers a $20 mail-in rebate on an item with a list price of $100. In order for the rebate to be a perfect hurdle, it must be the case that:
A. buyers use the rebate if and only if their cost of filling out the rebate is less than $20. B. all buyers with a reservation price greater than $80 use the rebate. C. some buyers with a reservation price greater than $80 use the rebate. D. buyers use the rebate if and only if they have a reservation price between $80 and $100.
Why is the line between frictional and structural unemployment sometimes hard to draw?
What will be an ideal response?
Behavioral economics refers to the study of situations
A) where consumers and firms appear to value fairness when they make choices. B) where consumers and firms disobey the laws of demand and supply. C) where consumers and firms appear to make choices that are appropriate to reach their goals. D) where consumers and firms do not appear to be making choices that are economically rational.
In response to the destructive bank panics of the Great Depression, future bank panics are designed to be prevented by
A) establishing a fractional reserve system of banking. B) increasing the required reserve ratio to 100%. C) the establishment of the Federal Deposit Insurance Corporation. D) the Federal Reserve System conducting open market operations. E) the Federal Reserve System acting as a lender of last resort.