Marco goes to the pet store to buy a dozen Koi fish for his new Koi pond. He is willing to pay $200 for the dozen fish, but buys them for a total of $140. Marco's consumer surplus from the purchase is
A) $5. B) $60. C) $140. D) $200.
B
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Answer the following statement(s) true (T) or false (F)
1. Environmental pollution can be characterized as a market failure that distorts the classical market outcome. 2. If we define the relevant market as “environmental quality,” then the market failure is due to the presence of a negative externality. 3. If market is defined as a good or service whose production or consumption generates environmental damage, then the market failure is due to a negative externality. 4. A public good is characterized as possessing either nonrivalry in consumption or nonexcludable benefits. 5. Nonrivalness means that one person’s consumption does not preclude that of another.
In the 1800s, public health boards were primarily concerned with _____
a. sanitary conditions in frontier areas b. sanitary conditions in large cities c. establishing public hospitals d. regulating private hospitals
The Federal Reserve System divides the U.S. into _____ districts
a. 5 b. 21 c. 6 d. 12 e. 17
When the housing bubble popped, the effect of the negative demand side shock and the negative supply side shock were the same on:
A. output, causing it to definitely decrease. B. prices, causing them to definitely rise. C. output, causing it to definitely increase. D. prices, causing them to definitely fall.