Sophia sits behind Gabriel on an airplane. Gabriel owns the right to recline his seat and values this right at $10 . Sophia values a non-reclined seat in front of her at $20 . Assuming no transaction costs, an efficient solution would be for Sophia to pay Gabriel $15 to not recline his seat
a. True
b. False
Indicate whether the statement is true or false
True
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Before the Great Depression, macroeconomic theory was dominated by the ________ approach that presumed the essential ________ of the private economy
A) Keynesian, stability B) Keynesian, instability C) old classical, stability D) old classical, instability
The market demand for wheat is Q = 100 - 2p + 1 , where is the price of barley. The cross price elasticity of demand for wheat with respect to barley
A) cannot be calculated from just the information provided. B) is negative. C) suggests that wheat and barley are complements. D) equals 1.
A deadweight loss occurs in a
A) monopoly. B) perfectly competitive market. C) market in which the market clearing price of a good equals the marginal cost of producing it. D) market in which the market clearing price of a good is below the marginal cost of producing it.
In general, the more of an individual's total budget that is spent on a given product, the
a. greater the supply-side response b. less elastic is the demand for that good c. more elastic is the demand for that good d. more the demand curve will shift when the price changes e. less the demand curve will shift when the price changes