When real consumption expenditure is plotted against real disposable income the resulting relationship is
a. very weak.
b. positive and very curvi-linear.
c. positive and very close to linear.
d. negative and very close to linear.
e. virtually flat.
C
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In the table above, if there are 80 umbrellas produced, the deadweight loss from the 80th umbrella is
A) $10. B) $20. C) $30. D) $40.
Taxation of agricultural land at a lower rate than commercial property might be justified _____
a. on utilitarian grounds b. on the benefit principle c. on the ability-to-pay principle d. on efficiency grounds
In auctions, the winner always pays a price equal to the highest (his) bid
Indicate whether the statement is true or false
Suppose that you have returned from your fishing expedition with 20,000 fish. The market price is $3 per fish. Your average fixed cost was $1 and your total variable cost was $5,000 . If the price jumps to $3.50 before you sell your first fish, how much extra profit, if any, do you earn?
a. c and d b. Extra profit is zero. c. Extra profit is enough to cover half of the fixed cost of your next trip. d. Extra profit is enough to cover all of the variable costs of your next two trips. e. Extra profit is $45,000.