Under autarky, consumer surplus is represented by the area
A) above the supply curve and below the equilibrium price.
B) above the supply curve and below the demand curve.
C) below the demand curve and above the equilibrium price.
D) above the demand curve and below the supply curve.
Answer: C
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Which of the following is an example of an open-access resource?
a. a city subway system b. a college education c. an elementary school education d. whales in the ocean e. pandas in the zoo
One reason why economists often appear to disagree when asked about the impact of some bad economic news is that
a. they do not understand the economy very well b. economics is a very difficult science, and so there are many incorrect economic projections being made c. economists rarely disagree; people just think they are disagreeing because they do not understand the language of economics d. economists often appear to be disagreeing when one is talking about long-run impact while the other is referring to short-run impacts e. economists are by nature competitive individuals and they often disagree
Celine buys a new MP3 player for $90 . She receives consumer surplus of $15 on her purchase if her willingness to pay is
a. $15. b. $90. c. $105. d. $75.
Keynesians identify three principal motives for demanding money. They are the:
A. transactions demand, precautionary demand, and liquidity motive. B. transactions demand, precautionary demand, and convertibility motive. C. transactions demand, speculative demand, and volatility motive. D. transactions demand, speculative demand, and precautionary demand.