Chris received a consumer surplus of $50 when he purchased a watch for $100 . This implies he was willing to pay _____ for the watch
a. $215
b. $150
c. $100
d. $50
b
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In the long run, zero economic profit exists in monopolistic competition and perfect competition.
Answer the following statement true (T) or false (F)
Which of the following statements is false?
A) Keynesians would not advocate an expansionary monetary policy to eliminate a recessionary gap if they believed that investment demand was interest-insensitive. B) Keynesians would not advocate an expansionary monetary policy to eliminate a recessionary gap if they believed the money market was in the liquidity trap. C) Keynesians would advocate an expansionary monetary policy to eliminate a recessionary gap if they believed investment spending was insensitive to changes in the interest rate. D) Keynesians believe that money wages are inflexible in the downward direction.
Why are trade agreements between the U.S. and Mexico more controversial than trade agreements between the U.S. and Canada?
What will be an ideal response?
Business cycle persistence refers to the property that
A) real GDP is rarely exactly at trend. B) booms and recessions last a long time. C) when real GDP is above trend, it tends to stay above trend, and when it is below trend, it tends to stay below trend. D) business cycles are persistently hard to predict.