Producer surplus equals the market price less the producer's minimum willingness to accept, or marginal cost.
Answer the following statement true (T) or false (F)
True
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The concavity or bowed-out shape of the production possibilities frontier is the result of
A. the law of downward-sloping demand. B. the law of upward-sloping demand. C. the principle of increasing cost. D. complementarity in consumption.
The figure shows the market for college education. In order for the efficient amount of education to occur, the government could provide a voucher of ________ per student
A) $4,000 B) $8,000 C) $12,000 D) $20,000 E) $16,000
The higher the required reserve ratio, _____
a. the larger the money multiplier b. the smaller the money multiplier c. the more the excess reserves after each round of the money-creation process d. the more the money that can be lent in each round of the money-creation process e. the lower the demand for cash by the non-banking public
Because the prices of final goods and services tend to increase more quickly than the prices of inputs, the short run aggregate supply curve is:
A. upward sloping. B. downward sloping. C. perfectly elastic. D. perfectly inelastic.