The reason that the impact on prices of decriminalization is ambiguous is that decriminalization causes a price
A. decreasing supply curve movement and a price increasing demand curve movement.
B. decreasing supply curve movement and a price decreasing demand curve movement.
C. increasing supply curve movement and a price decreasing demand curve movement.
D. increasing supply curve movement and a price increasing demand curve movement.
Answer: B
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Checkable and debitable accounts in commercial banks and other financial institutions are classified as money because
A) they are not liabilities of the banks. B) they sometimes earn an interest income for the depositor. C) they are generally acceptable in the payment of debt. D) banks hold currency in their vaults equal to the value of demand deposits.
Tom tunes pianos in his spare time for extra income. Buyers of his service are willing to pay $155 per tuning. One particular week, Tom is willing to tune the first piano for $120, the second piano for $125, the third piano for $140, and the fourth piano for $160 . Assume Tom is rational in deciding how many pianos to tune. His producer surplus is
a. $95. b. $80. c. $75. d. $60.