What does the demand curve tell us about the price that consumers are willing to pay?
What will be an ideal response?
For any fixed quantity of a good available, the vertical distance of the demand curve from the x-axis shows the maximum price that consumers are willing to pay for that quantity of the good. The price on the demand curve at this quantity indicates the marginal benefit to consumers of the last unit consumed at that quantity.
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Voters may be rationally ignorant about political issues because they:
a. don't realize how much they benefit from voting b. underestimate the effect of their one vote c. believe that the cost of gaining the information is greater than the benefit of having the information d. all of the above
In a production possibilities frontier, a point ________ the frontier is productively inefficient
A) along B) inside C) outside D) at either intercept of
Suppose Katrina always buys exactly 5 Rain Forest Bars each week, regardless of whether they are regularly priced at $1 or on sale for $0.50 . Based on this information, what is Katrina's price elasticity of demand for Rain Forest Bars?
a. 0 b. -1 c. Infinity d. Answer cannot be determined
Which of the following is a true statement concerning federal transfer payments?
A. Transfer payments ultimately must be repaid to the government by recipients. B. Transfer payments are included in the imports category of GDP. C. Transfer payments are included in the net exports category of GDP. D. Transfer payments are payments made by the government for which no good or service is currently received in return.