You have just bought a used car and drive away satisfied that you’ve made a good deal on the purchase. What would an economist say about your “gain” on the deal?
A. Your gain has clearly meant that the seller lost on the deal.
B. The seller has clearly gained, and you have actually lost on the deal.
C. Both you and the seller have gained something.
D. If your gain is too large, then the deal should be renegotiated.
E. If the seller’s loss is too large, then the deal should be renegotiated.
Answer: C
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In a perfectly competitive market the term "price taker" applies to
A) sellers but not buyers. B) only the smallest sellers and buyers. C) buyers but not sellers. D) sellers and buyers.
Suppose Warren Buffet withdraws $1 million from his checking account at Chase Bank. If the required reserve ratio is 20 percent, what is the maximum change in deposits in the banking system?
A) -$5 million B) -$4 million C) -$200,000 D) $1 million E) $5 million
In Figure 6.7 with a quantity constraint of Q1, consumer surplus is area:
A. A. B. A + B + C. C. E + F + G. D. B+E+G.
Discuss and explain each of the instruments of monetary policy
What will be an ideal response?