Which of the following did not contribute to the farmer's worsening terms of trade during the period of 1875-1895?
a. A rapid increase in the supply of agricultural products.
b. Output increases as a result of technological change during the period.
c. A rise in demand for U.S. crops after the Civil War.
d. The income elasticity of demand for most agricultural crops was less than one.
c. A rise in demand for U.S. crops after the Civil War.
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A market equilibrium is only efficient if:
A. the consumer surplus and the producer surplus associated with a given transaction are equal. B. output is distributed equitably among consumers. C. consumer surplus and producer surplus are both zero. D. all relevant costs and benefits are reflected in the market supply and demand curves.
Frieda is at her local florist to buy a dozen roses. She is willing to pay $75 for the roses, and buys them for $75. Frieda's consumer surplus from the purchase is
A) $150. B) $75. C) $37.50. D) $0.
What type of good is clean air?
A) Rival and exclusive B) Nonrival and exclusive C) Rival and nonexclusive D) Nonrival and nonexclusive
The total amount of surplus lost due to taxation is:
A. greater than the amount of revenue generated. B. less than the amount of revenue generated. C. transferred to the government in the form of tax revenues. D. used to fund public services.