The demand curve for cookies is downward sloping. When the price of cookies is $2 , the quantity demanded is 100. If the price rises to $3 , what happens to consumer surplus? ( )
A. It falls by less than $100.
B. It falls by more than $100.
C. It rises by less than $100.
D. It rises by more than $100.
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The price of a good rises from $8 dollar to $12 , and the quantity demanded falls from 110 to 90 units. Calculated with the midpoint method, the elasticity is ( )
A. 1/5
B. 1/2
C. 2
D. 5
Which of the following topics relates to Macroeconomics? ( )
A. a family’s decision about how much income to save
B. the effect of government regulations on auto emissions
C. the impact of higher national saving on economic growth
D. a firm’s decision about how many workers to hire
A marginal change is one that（ ）
A. a. is not important for public policy.
B. b. incrementally alters an existing plan.
C. c. makes an outcome inefficient.
D. d. does not influence incentives.
An American buys a pair of shoes manufactured in Italy. How do the U.S. national income accounts treat the transaction? ( )
A. Net exports and GDP both rise.
B. Net exports and GDP both fall.
C. Net exports fall, while GDP is unchanged.
D. Net exports are unchanged, while GDP rises.
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