When a market is in equilibrium, the total amount of consumer surplus must be ________ the total amount of producer surplus
A) larger than
B) equal to
C) less than
D) None of the above answers are correct.
D
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A unit tax
A) is based on the value of the good being sold. B) is a constant tax assessed on each unit of a good sold. C) is the primary tax studied in dynamic tax analysis. D) does not influence equilibrium price and quantity.
An impartial observer who attempts to settle disagreements by listening to both sides separately and making suggestions is called a(n)
a. collective bargaining agent b. arbitrageur c. mediator d. binding negotiator e. judge
The greater the marginal propensity to consume in the economy, the smaller the spending multiplier
a. True b. False Indicate whether the statement is true or false
If the economy is represented in the graph shown and is currently at point E2, which action is the Fed most likely to undertake?
A. Expansionary monetary policy, because it will shift AD to the right.
B. Contractionary monetary policy, because it will shift AD to the left.
C. Expansionary monetary policy, because it will shift AD to the left.
D. Contractionary monetary policy, because it will shift AS to the right.