Multiple Choice
If you are willing to purchase a house for $300,000 and you purchase the house for $275,000,this transaction will generate:
A) There is no surplus created
B) $25,000 worth of seller surplus and unknown amount of buyer surplus
C) $10,000 worth of buyer surplus and $15,000 of seller surplus
D) $25,000 worth of buyer surplus and unknown amount of seller surplus
Correct Answer:
Verified
Correct Answer:
Verified
Q27: Government intervention<br>A)can provide incentives to conduct business
Q28: A consumer values a house at $525,000
Q29: A buyer values a house at $525,000
Q30: Subsidies can destroy wealth because<br>A)subsidies move assets
Q31: The zero sum fallacy refers to<br>A)You gaining
Q33: A consumer values a car at $30,000
Q34: Technological advancement creates unemployment in firms that
Q35: Total surplus or gains created from trade
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Q37: An example of price floor is<br>A)Minimum wages<br>B)Rent