Consumer surplus is created when
a. a person trades away a good that yields diminishing marginal utility
b. a person's total utility increases when consuming an additional unit of a good
c. a good is purchased at a price that is less than the price the consumer would have been willing to pay
d. the total utility of a good is greater than its marginal utility
e. many consumers want to buy a good and the price goes up
C
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If the supply curve of cigarettes shifts to the left, quantity demanded for cigarettes
A) will decrease substantially. B) will increase substantially. C) will slightly increase. D) will slightly decrease.
All of the following location characteristics can result in higher worker salaries except which one?
A) unpleasant work conditions B) poor climate C) low cost of living D) long commute time
The fact that U.S. citizens expect to receive retirement benefits through Social Security and Medicare pushes their:
A. demand for loanable funds further right than it would otherwise be. B. demand for loanable funds further left than it would otherwise be. C. supply of loanable funds further right than it would otherwise be. D. supply of loanable funds further left than it would otherwise be.
________ analysis addresses the question of whether a policy should be used, while ________ analysis addresses the economic consequences of a particular policy.
A. Positive; normative B. Fiscal; monetary C. Monetary; fiscal D. Normative; positive