In a perfectly competitive market in which identical firms face the same horizontal marginal cost curve, if demand increases, then the amount of consumer surplus will
A) increase.
B) decrease.
C) become negative.
D) not change.
Answer: A
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A lump-sum tax is a(n) ________
A) progressive tax B) regressive tax C) proportional tax D) ordinal tax
Suppose Adam Einberg pays $100 for a ticket to a new Broadway play and $100 was the maximum price he was willing to pay. On the day of the performance of the play Adam refuses to sell the ticket for $150
How would behavioral economists explain Adam's refusal to sell his ticket? A) Adam's tastes had changed from the time he bought the ticket to the time of the performance of the play. B) Adam's income probably increased between the time he bought the ticket and the day of the play's performance. C) The endowment effect explains Adam's actions. People like Adam seem to value things that they have more than the things they do not have. D) When Adam bought the ticket he was being unrealistic about his future behavior.
If the capital-labor ratio is below the steady-state value, investment is ________ than break even investment, and the capital-labor ratio ________
A) greater; increases B) greater; decreases C) less; increases D) less; decreases
Which of the following statements is a positive economic statement?
A. The number of families living in poverty in the United States is too high. B. Government programs to help the poor are just making problems worse. C. One in every five children in the United States is living in poverty. D. The government should eliminate poverty in the country.