Consumer surplus is
a. a concept that helps us make normative statements about the desirability of market outcomes.
b. represented on a graph by the area below the demand curve and above the price.
c. a good measure of economic welfare if buyers' preferences are the primary concern.
d. all of the above are correct.
Answer: d. all of the above are correct.
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If you hear an economist argue that the economy does not experience business cycles but merely experiences variations in economic activity over time, you know that economist belongs to the school of
a. real business cycle theory b. Keynesian economics c. production possibilities growth theory d. accelerator cycle theory e. capital-based, long run growth theory
The International Monetary Fund has a "quasicurrency" called
a. the Special Drawing Right. b. the Voluntary Export Restraint. c. the Monetary Trilemma. d. the Euro Dollar.
During the early 20th century, economists who held that the Ricardian equivalence theorem was theoretically true could support either sound or functional finance.
Answer the following statement true (T) or false (F)
Refer to the information provided in Figure 16.1 below to answer the question(s) that follow. 
Figure 16.1 Refer to Figure 16.1. The ________ imposed as a result of producing the efficient level of fertilizer is $250.
A. marginal private cost B. tax C. marginal social cost D. total damage