When a 13-year-old girl consents to babysit John's children for $5 per hour, economists assume
A) the girl was made worse off while John was made better off.
B) the girl was made better off while John was made worse off.
C) both parties were made worse off.
D) both parties were made better off.
D
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Consider an economy that only produces wooden chairs. In 2012, the economy produced 100 wooden chairs priced at $10 each. The nominal GDP of the economy for the year 2012 will be:
A) $10. B) $1,000. C) $100. D) $10,000. Consider an economy that produces only cell phones. In the year 2012, the economy manufactures 275 cell phones, and each cell phone sells at $200. In the year 2013, the economy manufactures 280 cell phones but the price of each cell phone falls to $180.
Tim is working on a school report on the proposed merger between American Airlines and U.S. Airways
He finds that U.S. Airways' annual revenue for 2012 rose by 3.7 percent over the previous year, while the revenue for American Airlines recorded an increase of almost 6 percent. Based on this, he concludes that, in 2012, passenger traffic must have increased more for American Airlines than for U.S. Airways. Is Tim's conclusion correct? Explain your answer.
Answer the following questions true (T) or false (F)
1. Free trade refers to trade between countries without government restrictions. 2. A quota is the same as a voluntary export restraint. 3. A quota is a numerical limit on the quantity of a good that can be imported.
Refer to the figure above. If a price control is imposed at $8, what is the gain in consumer surplus?
A) $5 B) $10 C) $15 D) $20