Refer to Figure 4-2. What area represents the increase in producer surplus when the market price rises from P1 to P2?
A) B + D B) A + B C) A + C + E D) C + E
B
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Moving along the AS curve, when the price level increases, the
A) nominal wage rate falls, and there is an increase in the quantity of real GDP supplied. B) real wage rate rises, and there is an increase in the quantity of real GDP supplied. C) nominal wage rate rises, and there is a decrease in the quantity of real GDP supplied. D) real wage rate falls, and there is an increase in the quantity of real GDP supplied. E) real wage rate rises, and there is a decrease in the quantity of real GDP supplied.
According to the table above, paper product production exhibits
A) decreasing returns to scale. B) constant returns to scale. C) increasing returns to scale. D) varying returns to scale.
A negative externality or spillover cost (additional social cost) occurs when
A. the price of the good exceeds the marginal cost of producing it. B. the total cost of producing a good exceeds the costs borne by the producer. C. firms fail to achieve allocative efficiency. D. firms fail to achieve productive efficiency.
"Full employment":
a. Means that everyone who is searching for a job has one. b. Occurs when there is 0% unemployment. c. Occurs when the labor force participation rate equals the employment rate. d. Occurs when there is 0% cyclical unemployment.