Since most people would be willing to pay far more for a cup of diamonds than for a cup of water,
A) diamonds provide more satisfaction to most people than water provides.
B) most people are irrational when it comes to prestige or status goods.
C) most people wrongly think they value diamonds more highly than water.
D) people's choices and preferences are often inconsistent.
E) very few people are ever in danger of dying of thirst.
E
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With a home monopolist, the imposition of a tariff results in:
a. a higher deadweight loss than a quota. b. a higher price for consumers than a quota. c. a lower deadweight loss than a quota. d. the same welfare effects as a quota.
Net worth is
A) a measure of a firm's profits. B) the difference between a firm's assets and liabilities. C) part of stockholders' equity. D) listed on the asset side of a firm's balance sheet.