Alex is willing to pay $100 for a new dress. On reaching the store, he finds that the price is $75 . If Alex purchases the dress, he receives a consumer surplus of _____
a. $50
b. $25
c. $75
d. $100
b
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In Chapter 11, depreciation is assumed to be
A) a fixed proportion of real GDP. B) a fixed proportion of the capital stock. C) a fixed absolute amount. D) zero. E) a fixed proportion of the capital-labor ratio.
If a regulator sets the price equal to the natural monopolist's marginal cost,
a. the monopoly will experience a loss b. the monopoly will earn a profit c. the monopoly will earn zero profit d. consumers will be worse off than they would be if the firm's profit maximization activities were unregulated e. the monopoly will be better off than it would be if its profit maximization activities were unregulated
Economic growth is a(n) _______ process.
A. Constant. B. Exponential. C. Arithmetic. D. Linear.
Market failure may lead to
A. Production possibilities. B. The absence of externalities. C. An equitable distribution of goods and services. D. Public goods being underproduced.