Which of the following will cause a decrease in producer surplus?
a. the imposition of a nonbinding price ceiling in the market
b. buyers expect the price of a good to be higher next month
c. the price of a substitute increases
d. income increases and buyers consider the good to be inferior
d
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If initially the money supply is $1 trillion, velocity is 5, the price level is 1, and real GDP is $5 trillion, an increase in the money supply to $2 trillion
A) increases real GDP to $10 trillion. B) causes velocity to fall to 2.5. C) increases the price level to 2. D) increases the price level to 2 and velocity to 10.
The Federal Deposit Insurance Corporation (FDIC) insures the total value of all deposits in banks that are members of the Fed
a. True b. False Indicate whether the statement is true or false
Each of the following is likely to be a successful way for the government to solve the problem of overuse of a common resource except
a. regulating the use or consumption of the common resource. b. taxing the use or consumption of the common resource. c. selling the common resource to a private entity. d. asking individuals to voluntarily reduce their use of the resource.
In 2009, which category accounted for the highest share in the U.S. exports?
a. Industrial supplies b. Capital goods c. Services d. Consumer goods