Nick is prepared to spend $600 for a phone, but he is able to buy one on sale for $400. In this case, consumer surplus is ______.
a. $800
b. $600
c. $400
d. $200
d. $200
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Sharecropping can be best understood as
(a) a type of agreement preferred by peasants. (b) a type of agreement preferred by landlords. (c) a compromise between peasant and landlord preferences. (d) a type of agreement preferred by neither but given by tradition.
If a French company exports $2 million of machinery to Italy and French tourists spend $2 million at Italian beaches, the Italian current account balance ________, and the Italian financial account balance ________
A) rises; rises B) rises; is unchanged C) is unchanged; is unchanged D) is unchanged; rises
In the short run, if a firm's total variable cost curve lies everywhere above its total revenue curve, the firm should produce
a. the output level that minimizes average total cost b. the output level that minimizes average variable cost c. the output level that minimizes the distance between marginal cost and marginal revenue d. the output level that maximizes the distance between marginal cost and marginal revenue e. no output
If your income is $50,000 . your income tax liability is $10,000 . and you paid $0.25 in taxes on the last dollar you earned, your
a. marginal tax rate is 20 percent. b. average tax rate is 5 percent. c. marginal tax rate is 25 percent. d. average tax rate is 25 percent.