Economists call the difference between what you pay for a good and what you would have been willing to pay for it a(n)
a. budget deficit
b. consumer deficit
c. consumer marginal benefit
d. consumer surplus
e. economic benefit
D
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Suppose that real GDP grows by 3 percent a year, the quantity of money grows 5 percent a year, and velocity does not change. In the long run, the inflation rate equals
A) 3 percent. B) 5 percent. C) 8 percent. D) 10 percent. E) 2 percent.
A development bank
(a) accepts deposits from the poor. (b) makes loans for industry expansion. (c) is an agency such as the World Bank. (d) all of the above. (e) none of the above.
Suppose a vote was taken among 7 district representatives about how much of the city budget should be spent on tourism advertising. Two prefer it to be 10 percent, two prefer 15 percent, and three prefer 50 percent. According to the median voter theorem, the chosen amount to spend on tourism advertising is ______ of the budget.
A. 10 % B. 15 % C. 50 % D. 30 %
A $1.00 increase in the price of a restaurant meal results in a drop in quantity demanded of 5 meals. Which of the following statements is correct?
a. The slope of the demand curve is -1/5; there is insufficient information to determine the price elasticity of demand. b. The price elasticity of demand is -1/5; there is insufficient information to determine the slope of the demand curve. c. Both the slope of the demand curve and the price elasticity of demand are equal to -1/5. d. There is insufficient information to determine either the slope of the demand curve or the price elasticity of demand. e. The slope of the demand curve is -1/5; the price elasticity of demand is 5.