Combined, the consumer surplus and producer surplus at equilibrium is
A. as big as it can get.
B. typically negative.
C. lower than it would be at prices below equilibrium.
D. lower than it would be at prices above equilibrium.
Answer: A
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Suppose a long lost relative died and left you a trust fund worth $1 million that you will receive ten years from now. What effect, if any, will this have on your demand for airline travel? (Assume that airline travel is a normal good.)
What will be an ideal response?
Refer to Table 17-3. What is Hotspur's profit maximizing quantity of labor?
A) 2 workers B) 3 workers C) 5 workers D) 6 workers
When economic profits are zero, accounting profits
A) must be positive. B) will be negative. C) will equal zero. D) could be positive, negative or zero.
Paying off the national debt would redistribute income from the
a. debt holders to the taxpayers. b. taxpayers to the major recipients of transfer payments. c. banks to the taxpayers. d. taxpayers to the debt holders.