Consumer surplus
What will be an ideal response?
is the difference between the maximum prices consumers are willing to pay for a product and the lower equilibrium price.
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Which of the following is TRUE about current cost method and market value method?
A) They are used by the BEA to place current values on foreign indirect investments. B) These methods lead to the same valuations. C) Based on the current cost method, the BEA's 2009 estimate of U.S. net foreign wealth was $2,737.86 billion. D) The current cost method is preferred by the BEA. E) Foreign direct investments of the U.S. are valued at their original purchase price.
The graph below shows the Chamberlin model. The profit-maximizing price is at 
A. 04. B. 05. C. 03. D. 02.
Maryanne expects to work for another 30 years and expects to live another 10 years after she retires. If Maryanne completely smooths consumption over her lifetime, her marginal propensity to consume out of permanent increases in income is
A) 0.25. B) 0.33. C) 0.67. D) 0.75.
When a shortage exists in a market
A. the market clearing price is above equilibrium and market forces will cause the price to fall. B. the quantity supplied is greater than the quantity demanded at the current price. C. the quantity demanded is less than the quantity supplied at the existing price. D. the current price is below the market clearing price and the price will rise.