Suppose a seller's opportunity cost matches a buyer's valuation of the product. Assuming a two-person economy, which of the following statements will be true?
a. The transaction will benefit the buyer, while the seller will neither gain nor lose from it.
b. The economic value created by this exchange will be zero.
c. Both parties will be worse-off after the transaction.
d. The seller will be worse-off than the buyer after the transaction.
B
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Christy is a telemarketer. She estimates that this summer, she has a 0.2 probability of earning $10,000, a 0.5 probability of earning $5,000, and a 0.3 probability of earning only $1,000. What is Christy's expected income?
A) $7,256 B) $5,333 C) $4,800 D) $4,000
If consumption = $5,000; investment = $800, government purchases = $700, exports = $30, imports = $60, and transfer payments = $340, then _____
a. GDP = $7,400 b. GDP = $7,740 c. GDP = $3,140 d. GDP = $6,470 e. GDP = $6,840
For a monopoly, marginal revenue for all units greater than 1 is always:
A. more than price because of the quantity effect. B. more than price because of the price effect. C. less than price because of the quantity effect. D. less than price because of the price effect.
A perfectly competitive industry's short-run supply curve is best described as
A. the horizontal summation of the individual firms' supply curves. B. the upward sloping portion of the industry's marginal cost curve. C. perfectly inelastic. D. horizontal.