The demand curve for product X is given by QX = 50 - 2PX. How much consumer surplus do consumers receive when PX = $5?
A. $100.
B. $200.
C. $400.
D. $500.
Answer: C
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How much people plan to consume at various levels of disposable income is known as
A) dissaving. B) the consumption function. C) investment. D) inventory investment.
When the U.S. interest rate rises, the demand for U.S. dollars ________ and the exchange rate ________
A) increases; falls B) does not change; rises C) increases; rises D) decreases; falls E) decreases; rises
Taxing some citizens to provide welfare grants to other citizens has been called by some "coercive charity." The economist's case for "coercive charity" assumes
A) it is efficient to transfer a dollar from a wealthy person to someone with little income. B) morality cannot be legislated. C) people are basically selfish. D) people who genuinely want the poor to be helped often do not provide any help. E) redistributing income promotes more rapid economic growth.
Given freedom of movement for both goods and resources, if Florida producers specialize in oranges and Georgia producers specialize in peaches, then it would be reasonable to conclude that
a. Georgia has a comparative advantage in producing peaches. b. total output will be expanded when Georgia allocates more resources to producing oranges and Florida allocates more resources to producing peaches. c. Florida has a comparative advantage in producing peaches. d. the opportunity cost of growing oranges is higher in Florida than in Georgia.