As people buy more of the same product,
A. their consumer surplus rises.
B. their consumer surplus falls.
C. their consumer surplus will fall to zero to maximize their total utility.
D. the additional purchases do not affect their consumer surplus.
A. their consumer surplus rises.
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Suppose it takes Paul 3 hours to bake a cake and 2 hours to move the lawn, and suppose it takes Tom 2 hours to bake a cake and 1 hour to mow the lawn. Which of the following statements is correct?
A. Paul has the comparative in baking cakes B. Paul has the comparative in mowing the lawn C. Paul has the absolute advantage in baking cakes D. Paul has the absolute advantage in mowing the lawn.
If the government assigns private property rights to a common resource, then the
A) resource is under-utilized. B) marginal private cost becomes equal to the marginal social cost. C) government needs to set a quota to achieve efficiency. D) None of the above answers is correct.
What is a household's choice set defined as?
What will be an ideal response?
The only way to avoid the free rider problem is to allow the government to provide a public good
a. True b. False Indicate whether the statement is true or false