You enter a store and buy a bottle of soda. Do you usually receive consumer surplus?
A) Yes, because you wouldn't buy the soda if your willingness to pay would be less than the price.
B) Yes, because you are thirsty.
C) No, because you value other drinks more.
D) No, because you have less money after the transaction.
A
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Refer to the figure above. If A forms a customs union with C, the quantity of trade creation will be
A) 100 units. B) 70 units. C) 30 units. D) None of the above.
Hailey increases her consumption of Good X after the price of Good Y decreased. For Hailey
A. Good X is an inferior good. B. Good X and Good Y are complements. C. Good Y is an inferior good. D. Good X and Good Y are substitutes.
Discretionary fiscal policy
A. would have a larger effect on real GDP if the multiplier was smaller. B. may not have desired effects on real GDP because it leads to increases in aggregate demand. C. may not have desired effects on real GDP because of the time lags. D. may not have desired effects on real GDP because it leads to decreases in aggregate demand.
Using a Laspeyres index to calculate the Consumer Price Index (CPI)
A) weights quantities with current prices. B) weights prices with base-year quantities. C) weights quantities with base-year prices. D) weights prices with current year quantities.