We can measure total consumer surplus for good X as the:
A. area above the supply curve for X.
B. area bounded by the demand curve for X and the two axes.
C. area above the demand curve for X and below the price paid for X.
D. sum of the individual consumer surpluses for all buyers of X.
Ans: D. sum of the individual consumer surpluses for all buyers of X.
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Which of the following gives pollution-emitting firms an incentive to reduce the damage they do to the environment?
a. Negative externalities b. Positive externalities c. Commands and controls d. Pollution charges
The entry of a second firm shifts the demand curve of the original firm to the left ?, so that at each price the original firm will sell a decreased quantity.
The entry of a second firm shifts the demand curve of the original firm to the
so that at each price the original firm will sell
quantity.
Chris has a one-hour break between classes every Wednesday. Chris can either stay at the library and study or go to the gym and work out. The decision Chris must make is:
A. not an economic problem because it's an hour that Chris has no matter what he does. B. not an economic problem because neither activity costs money. C. an economic problem because the tuition Chris pays covers the cost of both the gym and the library. D. an economic problem because Chris has only one hour, and engaging in one activity means giving up the other.
Figure 34-7
?
In Figure 34-7, it is probably true that wages are
A. equal in Pestoland and Pastaland. B. greater in Pestoland than Pastaland. C. greater in Pastaland than in Pestoland. D. higher in pasta production than in pesto production in both countries.