When producers would have been willing to accept lower prices at various quantities produced than the market clearing price, the differences are called
A) producer surplus.
B) monopoly profits.
C) opportunity cost.
D) deadweight loss.
A
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Sustained growth refers to a growth process:
A) where growth in GDP per capita is attributed primarily to public sector firms and enterprises. B) where GDP per capita grows at a positive and steady rate for long periods of time. C) where growth in GDP per capita is translated into equal increase in welfare for all citizens in the country. D) where GDP per capita grows at a rate of more than 20% per year for long periods of time.
The large budget deficits of the early 1990s resulted in large current account deficits
Indicate whether the statement is true or false
If the average interval between firms' price adjustments is relatively long
A) an increase in aggregate demand will cause a relatively short-lived increase in real GDP. B) an increase in aggregate demand will cause a relatively long-lived increase in real GDP. C) a reduction in aggregate demand will cause a relatively short-lived reduction in real GDP. D) none of the above.
All other things constant, goods will have more __________ demand if their price uses up a __________ proportion of a consumer's budget
a. price-elastic; greater b. unit-elastic; smaller c. price-elastic; smaller d. price-inelastic; greater e. stable; greater