The producer surplus on a unit of a good is
A) equal to the marginal benefit from the good minus its price.
B) equal to the price of the good minus the marginal cost of producing it.
C) always equal to consumer surplus.
D) Both answers A and C are correct.
E) Both answers B and C are correct.
B
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The law of demand can be stated as all else equal:
A. quantity demanded rises as price falls. B. quantity demanded rises as price rises. C. quantity demanded rises as income rises. D. demand rises as price falls.
Developing countries, like many developed countries, have a dual economy.
Answer the following statement true (T) or false (F)
Democracy ________ essential to economic growth and according to the capabilities approach should ________.
A. is not; not be considered as improving lives if it doesn't directly contribute to growth B. is not; still be essential in sustaining basic freedoms C. is; also be seen as essential to sustaining basic freedoms D. is; not be considered to create capabilities without directly contributing to growth
When an economy's actual output differs from its potential at some point in time, we say that it is experiencing:
A. a boom. B. a recession. C. an output gap. D. an inflationary gap.