Total surplus equals:
A. consumer surplus + producer surplus ? deadweight loss.
B. consumer surplus ? producer surplus ? deadweight loss.
C. consumer surplus ? producer surplus + deadweight loss.
D. consumer surplus + producer surplus.
Answer: D
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Traditionally, bonds have been issued with coupons that bondholders redeem every
A) year. B) quarter. C) six months. D) month.
The total welfare associated with a market that includes a government sales tax equals
A) consumer surplus plus producer surplus. B) consumer surplus plus producer surplus minus government tax revenue. C) consumer surplus plus producer surplus plus government tax revenue. D) the government tax revenue.
If consumers view cappuccinos and lattés as substitutes, what would happen to the equilibrium price and quantity of lattés if the price of cappuccinos rises?
a. Both the equilibrium price and quantity would increase. b. Both the equilibrium price and quantity would decrease. c. The equilibrium price would increase, and the equilibrium quantity would decrease. d. The equilibrium price would decrease, and the equilibrium quantity would increase.
Which of the following could not be considered price discrimination?
A. Airlines offering super-saver fares to everyone. B. Movies offering cheap matinees. C. Senior citizen's discounts. D. The issuing of discount tickets to week-end travelers.