Surplus is:
A. maximized for individuals whose reservation price equals the market price.
B. a measure of the value that buyers and sellers get from participating in a market
C. negative for those who do not participate in a market.
D. All of these are true.
Answer: B
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National defense made up the largest portion of federal expenditures in 2009.
Answer the following statement true (T) or false (F)
In the income-expenditure framework, if planned aggregate expenditures are greater than real gross domestic product (GDP), _____
a. the price level will fall b. consumption will fall c. inventories will increase d. inventories will decrease e. consumption will decrease
The theory of creative destruction implies that too much competition leads to monopolies
Indicate whether the statement is true or false
College graduates earn much more than grade school dropouts mainly because
A. the college graduate is older. B. the college graduate has learned more. C. the college graduate is probably smarter, richer, more motivated, has better connections, and comes from a more supportive learning environment. D. the college graduate is more likely to have grown up in a large city, and to be more cosmopolitan.