In the above figure, if the price is $1.25 per gallon of milk and 5 million gallons are produced and consumed, then the consumer surplus is ________ and the producer surplus is ________
A) $3.125 million; $3.125 million
B) $12.5 million; $12.5 million
C) $6.25 million; $6.25 million
D) None of the above answers are correct.
A
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Rent seeking is the act of obtaining special treatment by ________ to create ________
A) a monopoly; consumer surplus B) the government; economic profit C) consumers; a monopoly D) the government; consumer surplus E) competitive producers; a monopoly
Improvements in the quality of goods and services over time
a. cause GDP statistics to understate true output growth from year to year b. cause GDP statistics to overstate true output growth from year to year c. are fully accounted for in the Bureau of Economic Analysis' measurement of GDP d. are reflected in higher prices and therefore do not affect the measurement of real GDP e. are offset by declining productivity over time
The United States typically experiences a large surplus of milk annually. This is caused by
a. a price ceiling in the market. b. not enough demand for milk. c. a price floor in the market. d. overproduction of milk by the cows.
What are the two critically important functions for corporate financing performed by stock exchanges?