Two economists from Northwestern University estimated the benefit households received from subscribing to broadband Internet service
They found that in the year they analyzed, 47 million consumers paid an average of $36 per month to subscribe to a broadband Internet service, and estimated the value of total consumer surplus for these subscribers was equal to $890.4 million. Based on these numbers, what was the average monthly consumer surplus per subscriber for broadband Internet service?
A) $0.05 B) $0.77 C) $13.06 D) $18.94
D
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For years, your neighbor insisted she had no desire to own a computer. Recently, however, she purchased one and says she did so because all her relatives have computers and she wants to exchange e-mail with them. Your neighbor's behavior is an example of
A) a switching cost. B) the impact of negative market feedback. C) limited-pricing behavior. D) a network effect.
In evaluating public projects, a higher interest rate (r) will favor those projects which
a. have costs and benefits occurring in the more distant future. b. have costs and benefits occurring in the more immediate future. c. have benefits occurring in the more immediate future and costs occurring in the more distant future. d. have benefits occurring in the more distant future and costs occurring in the more immediate future.
The opportunity cost of choosing an alternative
a. is the value of the highest valued alternative forgone as the result of the choice. b. includes only the amount of time spent on whatever is chosen. c. includes only the money cost of the option. d. is irrelevant for most choices individuals face.
In 2000, the U.S. terms of trade was one. In 2009 the U.S. export price index was 1.15 and the U.S. import price index was 1.18. Which of the following statements is the best interpretation of the change in the U.S. terms of trade between 2000 and 2009?
a. In 2009, the United States had to export 2% more in order to obtain the same amount of imports as in 2000. b. In 2009, the United States could export 2% less to obtain the same of amount of imports as in 2000. c. Prices of U.S. exports rose more rapidly than prices of U.S. imports. d. The U.S. terms of trade improved between 2000 and 2009.