If the world price for good A is below the domestic price for good A without trade, then producer surplus will ________ and total economic surplus will ________ with trade.
A. increase; decrease
B. increase; increase
C. decrease; increase
D. decrease; decrease
Answer: C
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According to Gordon, there is no pressing need for policies to reduce ________ unemployment
A) cyclical B) structural C) turnover D) mismatch
In a perfectly competitive industry, influence over price is exerted by: a. individual sellers
b. individual buyers. c. the largest firms. d. the forces of market supply and demand.
In the United States, the marginal tax rate on individual federal income tax
a. decreases as income increases. b. increases as income increases. c. is constant at all income levels. d. applies only to payroll taxes.
Figure 3-21
Refer to . At the quantity Q3,
a.
the market is in equilibrium.
b.
consumer surplus is maximized.
c.
the sum of consumer surplus and producer surplus is maximized.
d.
the value to buyers is less than the cost to sellers.