The producer surplus on a unit of output is the difference between the market price and the opportunity cost of producing it
Indicate whether the statement is true or false
TRUE
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A movement along the AE curve arises from a change in ________, and a movement along the AD curve arises from a change in ________
A) the price level; the price level B) real GDP; investment C) real GDP; the price level D) the price level; investment E) investment; the price level
U.S. economic data from 1955 to 2000 show that both unemployment and inflation rates increased during that period
a. True b. False Indicate whether the statement is true or false
If the size of a tax doubles, the deadweight loss doubles
a. True b. False Indicate whether the statement is true or false
Suppose the production function is given by Q = 3K + 4L. What is the marginal product of capital when 5 units of capital and 10 units of labor are employed?
A. 11 B. 3 C. 4 D. 45