Suppose the most you would be willing to pay for a plane ticket home is $250. If you buy one for $175, then your economic surplus is:
A. $0.
B. $75.
C. $250.
D. $175.
Answer: B
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In the United States, all property is privately owned.
Answer the following statement true (T) or false (F)
To signal to your insurance company that you are a low risk individual, you should
a. Accept an insurance policy with a high deductible b. Accept an insurance policy with a low deductible c. Accept an insurance policy with no co-payments d. None of the above
Allocative efficienty exist when firms produce the output most preferred by consumers
a. True b. False
Table 36-1Suppose the economy of Macroland is described by the following:C = 200 + 0.8 DI (DI = disposable income)I = 300 + 0.2Y?50r (Y = GDP)(r, the interest rate, is measured in percentage points. For example, a 9 percent interest rate is r = 9).For this economy, assume that the Federal Reserve uses its monetary policy to peg the interest rate atr = 5G = 750T = 0.25YX = 200M = 150 + 0.2YHint: DI = Y?T From Table 36-1, find the budget deficit or surplus for Macroland.
A. 125.50 B. ?93.75 C. ?126.25 D. ?154.75