The Congressional Budget Office, which is staffed by economists, provides Congress with independent evaluations of policy proposals.

A judge deciding a common law case must look for guidance to similar cases previously decided by that court or superior courts.

Refer to Figure 6.9. The marginal utility of the third video game rental is

A) 0.
B) 4.
C) 8.
D) 22.

As output increases, average fixed costs

A) increase.
B) decrease.
C) remain constant.
D) first increase and then decrease.

The Callie Company has provided the following information: Operating expenses were $231,000;
Cost of goods sold was $376,000;
Net sales were $940,000;
Interest expense was $32,000;
Gain on sale of a building was $76,000;
Income tax expense was $151,000.
What was Callie's income before taxes?

A) $564,000.
B) $188,000.
C) $377,000.
D) $232,000.

Answer each of the following questions about demand and consumer surplus.
a.What is consumer surplus, and how is it measured?
b.What is the relationship between the demand curve and the willingness to pay?
c.Other things equal, what happens to consumer surplus if the price of a good falls? Why? Illustrate using a demand curve.
d.In what way does the demand curve represent the benefit consumers receive from participating in a market? In addition to the demand curve, what else must be considered to determine consumer surplus?