What is economic surplus? When is economic surplus at a maximum?
What will be an ideal response?
Economic surplus is sum of consumer surplus and producer surplus. Economic surplus is at a maximum when the market is in equilibrium.
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Trade between countries that is without restrictions is called
A) unencumbered trade. B) unabated trade. C) free trade. D) unobstructed commerce.
Of the following, which is the least likely to be an example of substitute goods?
A) beer and pretzels B) margarine and butter C) beef and chicken D) tea and coffee
When banks create money, they
a. increase wealth at a pace equal to the rate of money creation b. destroy wealth at a pace equal to the rate of money creation c. increase wealth at a rate exceeding the rate of money creation d. increase wealth at a rate less than the rate of money creation e. do not create wealth
Structural stagnation focuses on ________ in terms of understanding why the economy experiences slow growth.
A. low consumption B. low government spending C. low investment D. globalization