The net gain to society from the operation of a competitive market in equilibrium is

A. consumer surplus only.
B. the profits of the producers.
C. the sum of consumer surplus and producer surplus.
D. producer surplus only.


Answer: C

Economics

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If the cross elasticity of demand between goods X and Y is positive and between goods X and Z is negative, then X and Y are ________ and X and Z are ________

A) price inelastic; complements B) complements; substitutes C) substitutes; complements D) price inelastic; income elastic

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An argument supporting promotion of the urban informal sector is

(a) the formal sector is incapable of providing enough employment. (b) informal sector workers are poorly educated. (c) it uses a relatively high capital intensity. (d) it would reduce urban bias.

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Total surplus:

A. is the total amount spent on a good in a market. B. is producer surplus minus consumer surplus. C. is producer and consumer surplus combined. D. is consumer surplus minus producer surplus.

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Some colleges charge for student parking. Currently, your college does not charge for parking but the administration announced a possible charge of $2 per day. You are not sure when the new parking policy will start; therefore you decide to keep a $5 bill in your wallet. You hold to $5 for the:

A. impulsive motive. B. money creation motive. C. speculative motive. D. precautionary motive.

Economics