Producer surplus equals
A) total revenue minus total variable cost.
B) total revenue minus the sum of all marginal cost.
C) profit plus fixed cost.
D) All of the above.
D
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The Classical macroeconomic model proposes that
A) real GDP equals potential GDP as long as inflation equals zero. B) government intervention is required to help the economy reach its potential. C) changes in the quantity of money are critical in driving economic growth. D) socialism produces the most efficient economic outcomes for a society. E) markets work efficiently to produce the best macroeconomic outcomes.
After a corporate merger, Rebecca Jalamid became the CEO of a monopoly firm. She was surprised to learn that one benefit of being a monopoly was that her company
a. could charge as high a price as desired b. was in a good position to capture the fruits of any innovation c. received increased scrutiny from government regulators d. started to attract potential competitors motivated to get a share of the economic profits of Rebecca's company e. contributed to the deadweight loss in the economy
If a nonbinding price floor is imposed on a market, then the a. quantity sold in the market will decrease
b. quantity sold in the market will stay the same. c. price in the market will increase. d. price in the market will decrease.
Which of the following terrorist acts makes the most sense from the perspective of the "rational terrorist"?
A. attempting to attack a well-defended target B. attacking a lightly-defended target in a media center C. quietly killing a CIA agent D. attacking a lightly-defended target in a remote area