Suppose Sam buys a good for $100 at a yard sale. If consumer surplus from the sale is $75, Sam would have been willing to pay:

a. $100 b. $175.
c. $25 d. equal to the deadweight loss.


b

Economics

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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.

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Excess reserves equal total reserves plus required reserves

a. True b. False Indicate whether the statement is true or false

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Mutual interdependence means that: a. each firm faces a perfectly elastic demand curve

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