Producer surplus is the ________ summed over the quantity sold
A) value of a good minus the price received for it
B) price received for a good minus the value of the good
C) price received for a good minus its marginal cost
D) marginal cost of making a good minus the price received for it
C
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When property rights are assigned and transactions costs are low,
A) all costs and benefits are taken into account by the transacting parties so the transaction is efficient. B) externalities will result in market failure. C) the marginal social benefit curve shifts leftward and the marginal social cost curve does not shift. D) the marginal social cost curve shifts rightward and the marginal social benefit curve does not shift. E) the marginal social cost curve shifts rightward and the marginal social benefit curve also shifts rightward.
According to the new classical view, if the money supply and prices fall but output remains the same indicates that
a. expectations must be adaptive. b. this change in the money supply was anticipated. c. aggregate supply must have shifted upward. d. none of the above can explain this.
In a certain city, the government is considering acquiring some land and turning it into a park (without any fences or gates). In an attempt to determine the extent to which residents of the city would value the park, residents are asked to fill out a questionnaire. Which of the following is correct?
a. On the questionnaire, some residents are likely to exaggerate the value they associate with the park. b. On the questionnaire, some residents are likely to exaggerate the costs they associate with the park. c. The use of such a questionnaire in cost-benefit analysis is likely to produce only rough approximations of residents' perceptions of the costs and benefits of a park. d. All of the above are correct.
Taxation is an important cash flow issue, but it typically does not have a strong impact on the choice of organizational form (such as branch or subsidiary) or the location of an investment.
a. true b. false