The difference between the total willingness to pay for a good and the amount actually spent measures:
A) the total benefits from consuming the good.
B) the net gain from the production and consumption of the good.
C) the amount by which producers are better off, i.e., producers' surplus.
D) the amount by which consumers are better off, i.e., consumers' surplus.
D
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The four criteria for economic integration include trade flows, capital flows, people flows, and the similarity of prices in separate markets
Indicate whether the statement is true or false
In the equation S = Y - C, in order to interpret Y as disposable income, it is necessary to interpret S as ________ saving
A) private B) national C) government D) business
Diminishing marginal product means that ________
A) when adding extra units of a single input, output increases become smaller B) when adding extra units of a single input, output increases become larger C) when adding extra units of a single input, output declines D) the amount of output increases when we add more inputs E) none of the above
Yeinsen Cookies produces cookies famous for their unique flavors. The elasticity of demand for cookies is equal to 0.62 when the price is $4.20 per pound. If the price of cookies increases to $4.50 per pound, which of the following is most likely to happen?
a. The total revenue earned by the company will fall. b. The total revenue earned by the company will rise. c. The quantity demanded of the cookies will increase. d. The quantity supplied of the cookies will decrease.