The above figure shows Dana's marginal benefit curve for ice cream. If the price of ice cream is $2 per gallon and Dana is allowed to buy only 8 gallons of ice cream, then her consumer surplus on the 8th gallon is
A) $1.
B) $2.
C) $3.
D) $8.
A
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Internal improvements are important to a developing and growing economy
Indicate whether the statement is true or false
The consumer price index is a measure of
A) the lowest prices paid by urban consumers for a fixed basket of consumer goods and services. B) the commodity prices paid by urban consumers for a fixed basket of consumer goods and services. C) the average of the prices paid by urban consumers for a fixed basket of consumer goods and services. D) the consumer prices paid by average households for a fixed basket of goods and services. E) the average of the prices paid by rural consumers for a fixed basket of consumer goods and services.
The fact that the United States has become a net debtor nation is an indication that
A. As undesirable as they are, trade restrictions are becoming a necessity. B. The United States should never have abandoned the gold standard. C. The U.S. economy is highly regarded by world investors. D. The U.S. economy is in a long-term decline compared to other major economies.
Which of the following would cause the present optimal extraction level of a nonrenewable resource to fall?
A. A reduction in extraction costs. B. A reduction in user costs. C. A reduction in total costs. D. A reduction in the price of the resource.