In a competitive equilibrium, the total consumer surplus must equal the total producer surplus
Indicate whether the statement is true or false
FALSE
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The tariff levied in a "large country" (Home), lowers the world price of the imported good. This causes
A) foreign consumers to demand less of the good on which was levied a tariff. B) domestic demand for imports to decrease. C) domestic demand for imports to increase. D) foreign suppliers to produce less of the good on which was levied a tariff. E) no change in the foreign price of the good it imports.
In Figure 5-1 above, if the budget line is BB0 and the natural real GDP is $5300, the structural surplus or deficit is
A) FC. B) AD. C) FA. D) none of the above.
If the price of hot dogs increases, what will happen in the market for potato chips, a complementary good?
a. Demand will increase. b. Quantity demanded will increase. c. Demand will decrease. d. Quantity demanded will decrease. e. Supply will decrease.
Consumers of Google and Facebook services are disadvantaged because:
A. consumers do not have accurate information to make decisions. B. potential competitors are unable to develop new competing technologies. C. the data Google and Facebook collect on users is a barrier to entry to new competition. D. consumers are given a service that is now free, but which will cost significant sums later.