Surplus is:
A. a measure of the value that buyers and sellers get from participating in a market
B. maximized for individuals whose reservation price equals the market price.
C. negative for those who do not participate in a market.
D. All of these are true.
A. a measure of the value that buyers and sellers get from participating in a market
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An increase in interest rates results in a(n) ________ in the required rate of return to hold stocks and ________ current stock prices.
A. decrease; reduces B. decrease; raises C. increase; reduces D. increase; raises
In the United States for people age 16 to 24, the typical woman earns about ________ of what the typical man earns
A) 90% B) 80% C) 70% D) 50%
The table above shows Mary's utility from chips and soda. Mary buys only chips and soda. Chips cost $2 per bag and soda costs $4 per six-pack. She has $20 to spend per week. To maximize her utility, Mary will buy
A) 5 sodas and 5 bags of chips. B) 3 sodas and 3 bags of chips. C) 8 sodas and 8 bags of chips. D) 6 sodas and 2 bags of chips.
Economists are often concerned with the free-rider problem
a. What is meant by free riding? Explain with an example. b. Are public parks subject to the free-rider problem? What about keeping city streets clean? Explain your answer.