Total producer surplus is measured by the total area under the equilibrium price and below the supply curve
a. True
b. False
Indicate whether the statement is true or false
False
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According to the Application, Hazlitt's argument that the broken window is NOT good for society
A) works in both the Keynesian and classical worlds regardless of where the economy is operating relative to full employment. B) works in the Keynesian world when the economy is operating below full employment. C) works in the classical world when the economy is operating at full employment. D) never works in the Keynesian or classical worlds regardless of where the economy is operating relative to full employment.
For a major country with extensive capital flows, what is the effect of a decrease in interest rates?
a. There will be an inflow of capital, a currency depreciation, and increased net exports. b. There will be an inflow of capital, a currency depreciation, and reduced net exports. c. There will be an outflow of capital, a currency depreciation, and increased net exports. d. There will be an inflow of capital, a currency appreciation, and reduced net exports.
The supply curve represents the relationship between:
A. income and quantity supplied with everything else held constant. B. price and quantity supplied with everything else held constant. C. consumer preferences and quantity supplied with everything else held constant. D. income and price supplied with everything else held constant.
When the government runs a budget surplus, it uses the funds to:
A. decrease public saving. B. decrease transfer payments. C. issue bonds. D. pay down outstanding debt.