Producer surplus is the price of a good minus the opportunity cost of producing it, summed over the quantity produced
Indicate whether the statement is true or false
TRUE
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Melissa has an income of $240 a month to spend on tennis lessons and concert tickets. The price of a tennis lesson is $20, and the price of a concert ticket is $40. The slope of Melissa's budget line, with tennis lessons on the horizontal axis, is
A) -2. B) -0.5. C) -6. D) -12.
An import quota is a
a. tax on imports b. legal limit on the amount of a specific good that can be imported into a particular country c. tax on import quantities above the legal limit d. way to increase tariff revenues e. legal incentive for members of GATT to increase their exports of a particular good
A monopolistic competitor: a. faces a perfectly elastic demand curve. b. faces an elastic demand curve
c. faces a unit elastic demand curve. d. faces an inelastic demand curve.
The Federal budget deficit is calculated each year by:
a. Subtracting government spending from government revenues b. Subtracting consumption and investment from government spending c. Adding up consumption, investment, government purchases, and net exports d. Adding up the difference between government revenues and spending over the years of the nation's existence