If the firm in Figure 17-4 above maintains its set price of P0, rather than dropping price to P1, the loss of consumer surplus due to this decision is
A) J + K.
B) K - G.
C) G + H.
D) H + K.
C
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If government intervention in the market creates market inefficiencies then
A) there is government failure. B) market failure. C) network externalities. D) the economy must be democratic.
To measure how productive workers in the economy are, the best measure to use would be
a. real GDP. b. GDP divided by the population. c. GDP divided by the nation's capital stock. d. GDP divided by hours worked.
Which of the following is most likely to result in inflation?
a. Aggregate demand and aggregate supply grow at the same rate. b. Neither aggregate demand nor aggregate supply grows at all. c. Aggregate supply grows more rapidly than aggregate demand. d. Aggregate demand grows more rapidly than aggregate supply.
All persons over age 16 who are either working for pay or actively seeking paid employment refers to:
A. Per capita GDP. B. The labor force. C. The unemployment rate. D. The CPI.