Producer surplus is the amount a seller is paid minus the cost of production
a. True
b. False
Indicate whether the statement is true or false
True
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A review of U.S. history provides evidence that
(a) class mobility is restricted. (b) race and gender barriers simply cannot be dismantled. (c) the wealthy and idle rich class has deep and permanent roots in the U.S. (d) there are no social barriers that cannot be overcome in the U.S.
An increase in the price of good x will be accompanied by:
a. a shift in the market demand curve for good x. b. a shift in the market demand curve for good y (a substitute for good x). c. a movement along the market demand curve for good x. d. both b and c.
An example of a sunk cost would be:
A. the price of a lift ticket you bought and used to ski the whole day. B. the price of a lift ticket you bought and used for 1 run before you fell and broke your ankle. C. the nonrefundable deposit you put on your vacation rental. D. All of these are examples of sunk costs.
With which of the Ten Principles of Economics is the study of international trade most closely connected?
a. People face tradeoffs. b. Trade can make everyone better off. c. Governments can sometimes improve market outcomes. d. Prices rise when the government prints too much money.