Consumer surplus is equal to the area
A) under the demand curve and above the supply curve.
B) above the supply curve and below the price line.
C) under the demand curve.
D) under the supply curve.
E) under the demand curve and above the price line.
E
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Suppose the elasticity of labor demand is 0.6. Then a decrease in the wage rate will:
A. Decrease total wage income B. Increase total wage income C. Have no impact on total wage income D. Have an indeterminate impact on total wage income
If the tax on a good is tripled, the deadweight loss of the tax
a. remains constant. b. triples. c. increases by a factor of 9. d. increases by a factor of 12.
Which of the following is most likely to be overconsumed?
A. Free water B. Tap water C. Sparkling water D. Bottled water
During the 1970s and 1980s, macroeconomists were busy integrating the insights of which of the following into their ideas about the economy?
A) real business cycle theory B) Keynesian theory C) supply side economics D) classical macroeconomics E) none of the above