Mary receives a consumer surplus of $500 from purchasing a purse. If the market price of the purse is $1,500, the price Mary is willing to pay is $1,600
a. True
b. False
Indicate whether the statement is true or false
False
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A baker can produce two products: cupcakes and pies. The table below is the baker's production possibilities schedule:Production Possibilities ScheduleProductABCDEFCupcakes01220365681Pies1086420Which of the following output-combinations is unattainable?
A. 2 pies and 48 cupcakes. B. 3 pies and 56 cupcakes C. 6 pies and 10 cupcakes D. 9 pies and 10 cupcakes
If Lake Boats charges an annual membership fee of $1,200 for the use of a boating slip (a place to store a boat) and charges a $50 fee each time a member docks their boat, this is an example of ________.
A) two-part pricing B) an all-or-nothing offer C) a single pricing scheme D) commodity bundling
When a payment is indexed to inflation and the price index understates inflation,
a. the real payment decreases over time b. the real payment increases over time c. the nominal payment decreases over time d. in unemployment rate will increase e. the level of unemployment will increase
If Ireland can produce cloth at a lower opportunity cost than Austria, then Ireland has a comparative advantage vis-à-vis Austria in cloth
Indicate whether the statement is true or false