When the benefits to society of using a product exceed benefits to the user,
a. the product should be strictly regulated
b. the product should be taxed
c. the product provides a positive externality
d. the product is overproduced at the privately determined equilibrium
e. in time the product will not be produced
C
Economics
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Juanita goes to the Hardware Emporium to buy a new circular saw. She is willing to pay $120 for a new saw, but buys one on sale for $85. Juanita's consumer surplus from the purchase is
A) $35. B) $85. C) $120. D) $205.
Economics
If the required reserve ratio (RRR) is 10 percent and the Fed sells a $5,000 bond to an individual who pays for it with a check, the money supply will
a. not change b. decrease by $4,500 c. increase by $4,500 d. decrease by $5,000 e. increase by $5,000
Economics