Suppose a market is in equilibrium. The area below the market price and above the supply curve is:
A. total economic surplus.
B. consumer surplus.
C. producer surplus.
D. the loss in total economic surplus.
Answer: C
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Suppose a jar of DeLux popcorn that is ultimately sold to a customer at Friendly Groceries is produced by the following production process: Name of CompanyRevenuesCost of Purchased inputsFulton Family Farm$0.500DeLux Popcorn Co.$2.50$.50Friendly Groceries$4.00$2.50What is the sum of the value added of all of the firms?
A. $3.00 B. $7.00 C. $6.50 D. $4.00
Which of the following is NOT considered one of the factors of production?
A) land B) labor C) capital D) technology E) entrepreneurship
If the income elasticity of demand for spaghetti is -1.3, then spaghetti
A) is a normal good. B) is an inferior good. C) has an elastic demand. D) is income elastic.
In order for a strike to be successful, the union must decrease the supply of both union and non-union labor
a. True b. False