A grocery store sells soup for $1.50 a can, or $2.50 for two cans. To a customer, the marginal cost of buying the second can of soup is
a. $1.
b. $1.25.
c. $1.50.
d. $2.50.
a
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Refer to Figure 5-1. At the efficient equilibrium,
A) economic surplus is minimized. B) economic surplus is maximized. C) economic surplus is zero. D) economic surplus is negative.
Measuring the sensitivity of bank profits to changes in interest rates by multiplying the gap times the change in the interest rate is called
A) basic duration analysis. B) basic gap analysis. C) interest-exposure analysis. D) gap-exposure analysis.
The above figure shows four different markets with changes in either the supply curve or the demand curve. Which graph best illustrates the market for computers after technological advances in making computers occur?
A) Graph A B) Graph B C) Graph C D) Graph D
If reckless drivers are more likely to buy automobile insurance than safe drivers are
A) a moral hazard has occurred. B) adverse selection has occurred. C) the market for insurance is efficient. D) then automobile insurance will be fairly priced.