The want-satisfying power of a good or service is known as
A) purchasing power.
B) utility.
C) consumer optimum.
D) principle of substitution.
Answer: B
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Tariffs create deadweight losses and destroy wealth, whereas quotas increase cooperative surplus and create wealth
Indicate whether the statement is true or false
What was the GATT?
What will be an ideal response?
Assume the market is in equilibrium in the graph shown at demand D and supply S2. If the supply curve shifts to S1, and a new equilibrium is reached, which of the following is true?
A. Producer surplus would increase, and total surplus would increase.
B. Producer surplus would decrease, and total surplus would increase.
C. Producer surplus would increase, and total surplus would decrease.
D. Producer surplus would decrease, and total surplus would decrease.
Income earned by entrepreneurs is described as
a. total revenue b. profit c. average revenue d. marginal revenue e. interest