The difference between the amount consumers would be willing to pay and the amount they actually pay for a good is called
a. price elasticity of demand.
b. consumer surplus.
c. the substitution effect.
d. income elasticity of demand.
b. consumer surplus.
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Which of the following statements is true of a monopolist's supply curve?
A) The supply curve is vertical. B) The supply curve is upward sloping. C) The supply curve is downward sloping. D) A monopolist does not have a supply curve.
The presence of the automatic stabilizers means an increase in the budget deficit will be automatically experienced during an economic expansion whereas a budget surplus will be automatically experienced during a recession
a. True b. False Indicate whether the statement is true or false
The monetarists believe
A. the Federal Reserve is very effective at fighting inflation. B. the key to stable economic growth is a constant rate of increase in the money supply. C. expansionary monetary policy will permanently reduce the interest rate. D. the money supply must increase at the same rate as the price level.
A union's success in raising the wage depends on
A) the elasticity of demand it faces. B) members' ability to act collectively. C) the share of the labor market that is unionized. D) All of the above.