Total economic surplus is represented by
A) The area below the demand curve and above the market equilibrium price.
B) The area below the demand curve and above the supply curve.
C) The area above the supply curve and below the market equilibrium price.
D) None of the above.
Answer: B
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Refer to Table 11-2. What is the marginal product of the 4th worker?
A) 230 bushels B) 57.4 bushels C) 50 bushels D) 12.4 bushels
The distinction between a "secured" lender and an "unsecured" lender is that in the event of the bankruptcy of the borrower
A) the unsecured lender has first claim on collateral. B) the secured lender has first claim on collateral. C) the secured lender has a first claim on all of the assets of the bankrupt borrower. D) the unsecured lender has a first claim on all of the assets of the bankrupt borrower.
M1 is:
A. less useful than M2 for understanding inflation. B. the money supply the Federal Reserve pays the most attention to in conducting monetary policy. C. the fastest growing of all of the money aggregates. D. a more useful measure of the relationship between the money supply and inflation because it includes the most liquid assets.
In wealthy countries such as the United States, the price elasticity of the demand for food is ________ it is in poorer countries.
A. greater than B. less than C. the same as D. None of these; it is not possible to make international comparisons of price elasticity.