Tim's opportunity cost of selling his car is $20,000 . Rebecca, who is a likely buyer, values that car at $25,000 . Calculate the economic value this transaction can create if Rebecca pays $23,500 for Tim's car
a. $1,500
b. $5,000
c. $3,500
d. $2,000
B
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The demand curve for a foreign currency in the foreign exchange market is ______.
a. downward sloping b. perfectly horizontal c. upward sloping d. perfectly vertical
Which of the following equations defines marginal revenue product?
a. MRP = P times Q. b. MRP = total cost. c. MRP = total revenue minus total cost. d. MRP = MPP times price of the product.
According to the assignment rule, if a country has excessive inflation and a balance of payments surplus, it should ease monetary policy and tighten fiscal policy.
Answer the following statement true (T) or false (F)
Which of the following is a positive economic statement?
A) People should not buy SUVs. B) The government should mandate electric automobiles. C) Scarcity necessitates that people make trade-offs. D) Foreign workers should not be allowed to work for lower wages than the citizens of a country.