When will consumers' surplus overstate the actual gains received by consumers?
a. When allocation decisions are not made on the basis of price.
b. When the commodity is not equally divided among consumers.
c. When all consumers place the same marginal value on the good.
d. When the distribution of goods is Pareto optimal.
a. When allocation decisions are not made on the basis of price.
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Monetary policy decisions are made by the
A) Federal Open Market Committee. B) Federal Reserve Economic Committee. C) Congress of the United States. D) U.S. Mint. E) Council of Economic Advisors.
Which of the following is NOT consistent with the law of diminishing marginal utility?
A) Newspaper vending machines are not as secure as soft drink machines. B) A student selects to eat at an all-you-can-eat restaurant rather than at a restaurant that charges for refills. C) A student's enjoyment of a movie increases the more she watches it. D) A symphony has free throat lozenges in their lobby.