If you are willing to sell your car business for $500,00 . and someone offers you $420,00 . for it, this transaction will generate:
a. There is no surplus created
b. $80,00 . worth of seller surplus and unknown amount of buyer surplus
c. $40,00 . worth of buyer surplus and $40,00 . of seller surplus
d. $80,00 . worth of buyer surplus and unknown amount of seller surplus
a
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Refer to Figure 26-1. In the figure above, the money demand curve would move from Money demand1 to Money demand2 if
A) the interest rate decreased. B) real GDP decreased. C) the price level increased. D) the Federal Reserve sold Treasury securities.
Refer to the above figure. Suppose there are L4 workers in the union. If the union wants to set a wage rate of W3, it must
A) determine which of its members will earn W3 and which will earn W1. B) accept that L4 - L2 members will not be able to find work in the industry. C) accept that L3 - L2 workers will have to get a lower wage equal to W2 and L4 - L3 workers will have to get a wage of W1. D) determine the most efficient way to get the firms to accept the wage and hire all L4 workers.