How do you calculate the total consumer surplus in any market? It is the area
a. price times quantity
b. above the supply curve and below the price
c. beneath the demand curve
d. beneath the demand curve and above the price
e. below the supply curve and above the demand curve
D
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Which of the following leads to a deadweight loss? i. overproduction ii. underproduction iii. taxes iv. monopoly
A) ii only B) iii and iv C) i and ii D) i, ii, iii, and iv E) i, ii, and iii
The most widely used measure of income inequality is
A) the Bureau of Labor Statistics' cost-of-living index. B) the Laffer curve. C) the Lorenz curve. D) the Gemini coefficient.
If a monopolist had no production costs, it would produce the output where marginal revenue intersects the quantity axis. At this point, the price elasticity of demand would be:
A. 1. B. zero. C. perfectly inelastic. D. perfectly elastic.
Elite colleges and universities use standardized test scores (such as SAT and ACT scores) and high school grades as
A) a means to raise student utility. B) a means to turn a university education from a "good" to a "bad." C) rationing devices. D) none of the above