Exam 3: Exchange and Markets

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A bunch of elementary school kids sit down at a long lunch table.For several minutes,everyone trades food,but then the table becomes quiet as they begin to eat.What happened?

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Assume the demand function for scooters is given by QD = 20,000 - 10P + 0.2I,where P = price of a scooter,and I = average income of consumers.Also,assume the supply function of scooters is given by QS = 20P.If the market for scooters is perfectly competitive,and the average income of consumers is $20,000,what are the equilibrium price and quantity in this market?

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Consumer surplus is

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The minimum wage is a

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The minimum wage

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Which of the following is a factor that can motivate changes in the costs of transferring knowledge?

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Suppose you purchase a bond with a 5 percent risk-free rate that matures in three years.The bond pays $250 at the end of each year and a principal amount of $2,000 on maturity.The present value of the bond is ?

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