If the price of action figures was $12.00 each, his consumer surplus would be
Table-Demand and Utility Table for action figures
A. $2.
B. $4.
C. $12.
D. $14.
A. $2.
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The method of forecasting with leading indicators can be criticized for
A) occasionally forecasting a recession when none ensues. B) forecasting the direction of the economy but not the size of the change in economic activity. C) frequent revisions of data after original publication. D) All of the above
Which of the following is an example of an organization using marginal analysis? a. A hotel manager calculating the average cost per guest for the past year
b. A farmer hoping for rain. c. A government official considering what effect an increase in military goods production will have on the production of consumer goods. d. A business calculating economic profits.
Suppose you go out with your friend for coffee and donuts at the local donut store. The first donut you eat tastes incredibly good. The second one also tastes pretty good. The third donut seems just okay. With the fourth donut you are turning somewhat green. The fifth donut makes you sick. Your friend, an economist, describes your experience as the principle of:
a. utility maximization. b. irrationality in consumer behavior. c. instant gratification. d. differing tastes and preferences. e. diminishing marginal utility.
Which of the following is the formula for the intra-industry trade (IIT) share in a product's total trade?
A. 1 - [ |X + M| / (X - M)] B. 1 - [ |X - M| / (X + M)] C. 1 - |X - M| D. 1 - (X + M)