consumer surplus

What will be an ideal response?


-The difference between the maximum amount consumers would be willing to pay and the amount that they actually pay.
-is the area below the demand curve but above the price.
-represents the net gains to buyers from market exchange.

Economics

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Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. A bundle of goods that Country B could potentially make would be:

A. (400 iPods, 2,000 tablets). B. (200 iPods, 1,500 tablets). C. (300 iPods, 450 tablets). D. (400 iPods, 1 tablet).

Economics

The balanced budget multiplier is always equal to:

A. 0.50. B. 0.75. C. 1 / MPC. D. 1.

Economics

Refer to the above figure. Suppose point A is the original equilibrium. If there is an increase in the money supply, the new long-run equilibrium is given by point

A. A. B. B. C. C. D. D.

Economics

What is the “managed float”?

What will be an ideal response?

Economics