The producer surplus on a unit of a good is the
A) difference between the marginal social benefit and the marginal social cost.
B) number of dollars' worth of other goods and services forgone to produce this unit of the good.
C) difference between the price of the good and the marginal cost of producing the good.
D) difference between the total cost of the good and the marginal cost.
C
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To analyze policy options, economists are forced to deal with
A. ordinary citizens. B. elected officials. C. rotating statistical values. D. events that have not occurred.
The optimal level of air quality
a. is always zero b. occurs when the marginal social cost of air quality exceeds the marginal social benefit c. is greater if the marginal social benefit curve of air quality shifts rightward d. occurs when positive externalities are eliminated e. eliminates the common pool problem
In a market economy, income depends mostly on
a. productivity b. luck c. age d. sex e. discrimination
A black market develops only when quantity demanded exceeds quantity supplied
a. True b. False Indicate whether the statement is true or false