Refer to the scenario above. Which of the following will be true if Alice stops the auction at $30,000?
A) She will earn zero consumer surplus.
B) She will earn a consumer surplus of $5,000.
C) She will earn a consumer surplus of $30,000.
D) She will earn a consumer surplus of $16,000.
A
Economics
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If a state requires all drivers to purchase auto insurance, insurance companies still face the problem of
A) sunk costs. B) excess demand for their insurance. C) correctly pricing their insurance. D) adverse selection.
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A policy of "beggar-thy-neighbor" is a policy that
A) often benefits the home country in the long run. B) often benefits the foreign country in the long run. C) often benefits foreign country in the short run. D) does not often benefits any country in the long run. E) benefits the home country's neighbors in the long run.
Economics