When buyers and sellers optimize in a perfectly competitive market, ________
A) social surplus is maximized
B) social surplus is minimized
C) only consumer surplus is maximized
D) only consumer surplus is minimized
A
You might also like to view...
According to real business cycle theorists, in modern times, economic fluctuations can largely be attributed to
A) the entry of more college graduates in the labor market. B) advancements in technology. C) large scale unemployment. D) immigration policies that increased the supply of labor.
The monetarist assumption that monetary policy cannot change long-run equilibrium income is based on the idea that:
a. the long-run aggregate supply curve is horizontal. b. the long-run Phillips curve is vertical. c. the price level in the long run is fixed. d. the aggregate demand curve cannot shift. e. the long-run Phillips curve is upward-sloping.
Earth Movers & Shakers operates 3 iron ore mines. The accompanying table shows each mine's total daily production and the current number of miners at each mine. All miners work for the same wage, and each miner in any given mine produces the same number of tons per day as every other miner in that mine. Total Tons Per DayNumber of MinersMother Lode10025Scraping Bottom3010Middle Drift7515 The opportunity cost of moving one miner from Scraping Bottom to another mine is:
A. 3 tons per day. B. 4 tons per day. C. 0 tons per day. D. 5 tons per day.
If the price of personal computers were to rise, then the demand for printers would decrease because personal computers and printers are
A) complementary goods. B) consumer goods. C) inferior goods. D) substitute goods.