Consumer surplus is the difference between what the producer actually receives for a good and what the producer is willing to receive
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
If the supply of loanable funds increases, what is the result for the equilibrium of the loanable funds market?
A) A surplus of loanable funds would push interest rates down and increase the equilibrium quantity of loanable funds. B) A surplus of loanable funds would push interest rates up and decrease the equilibrium quantity of loanable funds. C) A shortage of loanable funds would push interest rates down and increase the equilibrium quantity of loanable funds. D) A shortage of loanable funds would push interest rates up and decrease the equilibrium quantity of loanable funds.
Money neutrality states that a change in the money supply affects _____ variables only. Most economists believe that money neutrality is a good description of how money affects the economy in the _____
Fill in the blank(s) with correct word
When a consumer is at the consumer optimum
A. MUa = MUb = MUc = . . . = MUn. B. MUa/Pa = MUb/Pb = MUc/Pc = . . . = MUn/Pn. C. MUa/Pa = MUb/Pb = MUc/Pc = . . . = MUn/Pn = 1. D. TUa = TUb = TUc = . . . = TUn.
Assume that if there was no crowding-out, an increase in government spending would increase GDP by $100 billion. If there had been partial crowding-out, however, then GDP would have:
A. Increased by more than $100 billion B. Increased by less than $100 billion C. Increased by $100 billion D. Not increased