The answer is: "The difference between the price buyers pay for a good and the maximum or highest price they would have paid for the good." This is the definition for
A) taxes.
B) producers' surplus.
C) consumers' surplus.
D) the sum of producers' and consumers' surpluses.
E) the welfare triangle.
C
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In describing the economic setting in the real goods market, which of the following economic measures is the most helpful?
a. Current real exchange rate b. Current unemployment rate and labor force participation rate c. Annual inflation rate during the past year d. Current nominal exchange rate e. Percentage change in nominal GDP during the past year
Which of the following does Luddite reasoning get correct?
A. Historically, the demand for labor has actually increased as technology has advanced. B. New technology frequently causes some specialized labor skills to become obsolete. C. New technology tends to raise total output, leading to an increase in the demand for labor. D. Labor is necessary for building and maintaining machines, and so increased demand for machines increases the demand for labor.
Suppose that in 2011, 3 million plasma TVs were purchased at $950 each, while in 2012, 4 million plasma TVs were purchased at $800 each. What might have caused this change?
A. The price of LCD TVs (a substitute for plasma TVs) fell. B. The price of LCD TVs (a substitute for plasma TVs) rose. C. There was an advance in plasma TV manufacturing technology. D. There were fewer workers in plasma TV manufacturing.
The ratio of the prices of two products that a consumer would buy with a given fixed income is equivalent to the:
A. Marginal rate of substitution B. Slope of the budget line C. Income elasticity of demand for the two products D. Price elasticity of demand for the two products