Which statement best defines producer surplus?
a. the amount that a seller would have liked to have charged, minus the amount that they actually received
b. the amount that a seller is paid for a good minus the seller’s actual cost
c. the amount that individuals would have been willing to pay, minus the amount that they actually paid
d. when it is impossible to improve the situation of one party without imposing a cost on another
b. the amount that a seller is paid for a good minus the seller’s actual cost
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The number of workers hired by a monopsonist that is facing a union is
a. equal to the competitive labor market number of workers b. greater than the competitive labor market number of workers c. greater than the number of workers if the monopsonist were not facing a union d. less than the number of workers if the monopsonist were not facing a union e. the same as the number of workers if the monopsonist were not facing a union
Between 1980 and 2005, the Vanguard Index Fund earned 12.3%/year, while the average mutual fund investor earned:
a. 1.9% b. 2.3%. c. 5.1%. d. 7.3%.
In the long run, a decrease in aggregate demand, all other things unchanged, will cause the price level to _______ and potential output to _______ .
A. decrease; decrease B. increase; remain stable C. decrease; remain stable D. increase; increase
Negative externalities occur when an economic activity has a spillover ____ that ______ affect those directly engaged in the activity.
Fill in the blank(s) with the appropriate word(s).