The lower the price, the lower the producer surplus, all else equal
a. True
b. False
Indicate whether the statement is true or false
True
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New growth theory claims that economic growth occurs because firms reap profits from research and add to the stock of capital
Indicate whether the statement is true or false
Explain how the below graph illustrates the built-in stability of a progressive tax structure.
Suppose the socially optimal output is 134 units of a good and the market output is 95 units of the good. A possible reason the market produces "too little" is that
A. marginal private benefits are less than marginal social benefits. B. marginal private benefits are greater than marginal private costs. C. marginal private benefits are greater than marginal social benefits. D. marginal private costs are greater than marginal private benefits. E. b and c
The nation, as a whole, is hurt by inflation if it:
a. Is unexpected. b. Is expected. c. Reduces productivity. d. Rises at a rate that is greater than real GDP. e. All the above are true.