Suppose the market supply curve is p = 5Q. If price increases from 10 to 15, the change in producer surplus is
A) 25.
B) 5.
C) 12.5.
D) 20.
C
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The above table shows Homer's utility from boxes of doughnuts. If Homer decreases his consumption of doughnuts from 4 boxes to 3 boxes, his
A) total utility and marginal utility will both decrease. B) total utility will decrease, but his marginal utility will increase. C) total utility will increase, but his marginal utility will decrease. D) total utility and marginal utility will both increase.
Consider the game between the teens from the previous question. Instead of being a simultaneous game, suppose it is sequential, with teen A moving first. What is the subgame-perfect equilibrium of this new game?
a. Both Declare. b. Both Ignore/Rebuff. c. It is a mixed strategy equilibrium. d. Teen A Declares and Teen B follows A's action.
The marginal revenue curve for a monopolist is
a. always above the demand curve. b. generally below the average cost curve. c. always above the average revenue curve. d. always below the demand curve.
Which of the following events led to the crisis in macroeconomics and to the development of rational expectations theory?
A) the Great Depression B) the stock market crash of 1987 C) the stock market speculative bubble of the late 1990s D) stagflation in the 1970s E) large budget deficits in the 1980s