At the efficient level of production, ________
A) producer surplus must be greater than consumer surplus
B) consumer surplus must be greater than producer surplus
C) there is no deadweight loss
D) the market price is greater than the monopoly price
C
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A long term goal of the NAFTA member countries is to integrate their economies into a single economic entity with a common currency as well as common trade policies and internal factor mobility
Indicate whether the statement is true or false
For a country to be a price taker in the global market for some good:
A. there must be many buyers all buying a large amount from the market. B. the quantity it produces and consumes must be very small relative to the total amount of that good bought and sold worldwide. C. there must be many sellers all supplying a very significant amount to the market. D. the quantity it produces and consumes must be very large relative to the total amount of that good bought and sold worldwide.
Suppose a country switches from a fixed to a flexible exchange rate. Which of the following will occur as a result of this change?
A) Monetary policy will become a less effective tool for changing output. B) A given change in government spending will now have a greater effect on output. C) Both fiscal and monetary policy will become more effective in changing GDP. D) Both fiscal and monetary policy will become completely ineffective in changing GDP. E) none of the above
If we add successive laborers to work a given amount of land on a wheat farm, eventually
A) average total cost will fall to zero. B) the increases in wheat harvested will rise at a constant rate. C) the increases in wheat harvested will get smaller and smaller. D) the increases in wheat harvested will get larger and larger.