In: Economics
32.Suppose that you purchase a Juul vape for $16, leaving you with a Consumer Surplusof $40. What is your Willingness to Pay for a Juul vape?(A) $24.(B) $16.(C) $56.(D) $40.33.Suppose that automobile workers form a union to demand higher wages. Whateffect does this have on the market for automobiles?(A) Demand increases.(B) Demand decreases.(C) Supply increases.(D) Supply decreases.10
Q32. Price of a Juul vape = $16
Consumer Surplus = $40
Willingness to pay for a Juul Vape = Price paid + Consumer Surplus = $16 + $40 = $56
Ans: C. $56
Q33. As a result of the increase in the workers' wages, the cost of production per unit increases. Therefore, the supply of automobiles decreases i.e., the supply curve shifts to the left
Ans: D. Supply decreases
Q34. An ageing population and fewer children imply a decrease in the proportion of the young population. Due to a decrease in the proportion of the young population in Canada, the demand for night clubs decreases.
Ans: B. Demand decreases
Q35. An improvement in technology - Shifts the PPF outside as the productivity of the economy increases.
A transition from a democracy to a socialist dictatorship - The efficiency of allocation of resources decreases as the government controls what to produce and how to produce. Therefore, the PPF shifts inside.
An increase in labor force and capital accumulation both lead to an increase in the resource stock of the economy and hence the PPF shifts outside.
Ans: B. A transition from a democracy to a socialist dictatorship