Phil and Kelly have always wanted to take a cruise. Although willing to pay $5,000 for a Caribbean cruise for two, they were able to purchase a cruise vacation for two for $3,500 . Their total consumer surplus amounted to:
a. $750
b. $5,000.
c. $1,500.
d. $3,500.
c
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Which of the following is likely to be an unreported economic activity?
A) the brokerage fees paid to a broker at Merrill Lynch B) the purchase of shares of stock in Walgreen's Pharmacy C) a $250,000 bonus paid to the CEO of a company D) tips paid to a taxi driver E) the minimum wage paid to a teenager working at a McDonald's
Refer to the figure above. What is the domestic price of pens in Lithasia?
A) $1 B) $2 C) $3 D) $6
The fiscal and monetary policy alternative to fine-tuning is
A) abandonment of both fiscal and monetary policy. B) abandonment of fiscal policy in favor of exclusive reliance on monetary policy. C) budgets established for the long term and a steady growth rate for the money stock. D) price and wage controls. E) redistribution of income in favor of those with a higher propensity to spend.
The median voter votes yes for a project if
A) the value of the project for him is larger than the tax he needs to pay. B) the value of the project for him is smaller than the tax he needs to pay. C) the total benefits are positive. D) the total cost is zero.