Use the following figure showing the domestic demand and supply curves for product B in a hypothetical economy to answer the next question.
After trade, at a world price of Pw, the net gain of producer surplus equals area(s)
A. B + C.
B. D.
C. A + B + C + D.
D. B + C + D.
Answer: D
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Which of the following is an example of paradigm innovation:
A. Windows computer operating system B. Energy-saving light bulbs C. The latest model of the Honda Civic D. Rechargeable batteries
U.S. poverty figures do not include in-kind transfers or underreporting of income.
Answer the following statement true (T) or false (F)
Recall the Application about how the effect of a more dangerous job on wages may be used to calculate the value of a statistical life to answer the following question(s).According to the Application, one way to calculate the value of a statistical life is to compare how much more workers are paid with:
A. the increase in the probability of dying on the job. B. the average age of death for people who worked in that type of job. C. the number of people how died in that job that year. D. how much the company pays for life insurance for their workers.
The marginal rate of substitution measures
A) the willingness of a consumer to exchange a good with another consumer. B) the willingness of a consumer to pay the form for a good. C) the value in dollars of the last unit of good obtained by the consumer. D) the rate at which a consumer is willing to exchange one good for another.