At present, the maximum legal price for a human kidney is $0 . The price of $0 maximizes
a. consumer surplus but not producer surplus.
b. producer surplus but not consumer surplus.
c. both consumer and producer surplus.
d. neither consumer nor producer surplus.
d
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Bianca consumes pizza. Marginal utility theory predicts that when the price of pizza increases
A) Bianca's total utility from pizza will increase. B) Bianca will buy less pizza. C) Bianca's marginal utility from pizza will increase. D) Bianca's demand curve for pizza will shift leftward.
A preference for policies that place limits on trade is called:
A. liberalization. B. free trade. C. protectionism. D. autarky.
Using the Taylor rule, if inflation is 3 percent, desired inflation is 2 percent, and output is 2 percentage points below potential, the Fed should target a federal funds rate of:
A. 3.5. B. 4.5. C. 6.5. D. 3.0.
Moe divides his time between studying Physics and studying Economics. His production possibilities curve for his final grade in each class is shown in the accompanying figure.
According to Moe's PPC, moving from a 70 to an 80 in economics:
A. is inefficient. B. has a higher opportunity cost than moving from an 80 to a 90. C. has a lower opportunity cost than moving from an 80 to a 90. D. is unattainable.