Is the marginal benefit someone receives from a good or service the same as the price the person pays? Explain your answer
What will be an ideal response?
Generally the marginal benefit of a good or service is different than the price that is paid. The marginal benefit is the maximum amount a consumer is willing to pay for a good or service. Typically the consumer can buy the good or service for a price less than the maximum. (Indeed, the difference between the maximum price the consumer is willing to pay and the price actually paid is the consumer surplus.) However, it might be the case that the price precisely equals the maximum the consumer is willing to pay. In this case alone, the marginal benefit equals the price. (And in this case, the amount of the consumer surplus equals zero.)
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The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
Referring to Table 4.1, Box F should be filled with 
A. $0. B. $100. C. $10. D. $110.
Which of the following is NOT true of nontariff barriers to imports?
A. Like tariffs, nontariff barriers result in a net welfare loss in a small country. B. Some nontariff barriers create uncertainty about the conditions under which imports will be permitted. C. Nontariff barriers can limit imports with greater certainty than tariffs. D. Unlike tariffs, nontariff barriers do not increase the price of imported goods in the domestic markets.
The average propensity to consume is the
A. rate at which real disposable income changes as autonomous consumption changes. B. ratio of changes in planned consumption to changes in real disposable income. C. slope of the consumption function. D. percentage of total disposable income consumed.