The price of a typical basket of goods and services in one period divided by the price of the same basket in a different year is a(n)
a. price index
b. TV-violence index
c. employment index
d. output index
e. unemployment index
A
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Which of the following statements correctly differentiates between consumer surplus and net benefits?
A) Consumer surplus at different levels of consumption can be calculated arithmetically, whereas net benefits at different levels of consumption cannot be estimated. B) Consumer surplus at different levels of consumption cannot be estimated, whereas net benefits at different levels of consumption can be calculated arithmetically. C) Consumer surplus measures difference between willingness to pay for a good and its price, whereas net benefits measure the overall satisfaction gained from consumption of a good. D) Consumer surplus equals the overall satisfaction gained from consumption of a good, whereas net benefits measure the difference between willingness to pay for a good and its price.
Refer to Scenario 1-3. Had the firm not produced and sold the last 400 t-shirts, would its profit be higher or lower, and if so by how much?
A) Its profit would be $800 higher. B) Its profit would be $4,000 lower. C) Its profit would be $4,800 higher. D) Its profit would be $800 lower.
When there is an increase in the price of a good,
A. the demand curve will shift to the left. B. the elasticity of demand will determine the degree to which quantity demanded rises. C. the demand curve will shift to the right. D. the elasticity of demand will determine the degree to which quantity demanded falls.
Refer to the data. If the consumer has money income of $52 and the prices of J and K are $8 and $4 respectively, the consumer will maximize her utility by purchasing:
Answer the question on the basis of the following two schedules, which show the amounts of additional satisfaction (marginal utility) that a consumer would get from successive quantities of products J and K.
A. 2 units of J and 7 units of K.
B. 5 units of J and 5 units of K.
C. 4 units of J and 5 units of K.
D. 6 units of J and 3 units of K.