Which of the following best explains the source of consumer surplus for a particular product?
a. Many consumers pay prices that are greater than the equilibrium price of the product.
b. Many consumers would be willing to pay more than the market price for the product.
c. Many consumers think the market price of the product is greater than its cost.
d. Many consumers think the demand for the product is elastic.
B
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Minimum wages:
A) benefit all workers. B) are usually set below equilibrium wages. C) can reduce wage rigidity. D) can increase unemployment.
The figure shows the market for college education. If the market for education is competitive and with no government intervention, the equilibrium quantity of college students is ________ million and the efficient quantity of college students is
________ million. A) 2; 4 B) 8; 2 C) 8; 4 D) 4; 8 E) 0; 10
A firm's expansion path is
A) the firm's production function. B) a curve that makes the marginal product of the last unit of each input equal for each output. C) a curve that shows the least-cost combination of inputs needed to produce each level of output for given input prices. D) none of the above
An example of an in-kind transfer is
A) national defense. B) Social Security. C) low-cost public housing. D) unemployment benefits.