What is the difference between approximate and exact consumer surplus?
A. Approximate consumer surplus is calculated using an uncompensated demand curve, while exact consumer surplus is calculated using a compensated demand curve.
B. Approximate consumer surplus is calculated using a compensated demand curve, while exact consumer surplus is calculated using an uncompensated demand curve.
C. There is no difference between approximate and exact consumer surplus.
D. Approximate consumer surplus can be measured, while exact consumer surplus cannot be measured.
A. Approximate consumer surplus is calculated using an uncompensated demand curve, while exact consumer surplus is calculated using a compensated demand curve.
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Government spending ________ is included in gross domestic product
A) at the federal level of government only B) at state and local levels of government only C) at federal, state, and local levels of government D) on defense goods only
Communication between players prior to the start of a game that does NOT affect the payoffs is called
A) cheap talk. B) ineffective bargaining. C) a binding verbal contract. D) pareto efficient.
The most volatile component of aggregate demand is
a. consumption spending. b. government spending. c. investment spending. d. net exports.
Under rent controls
A) there is a shortage of rental units. B) the quantity supplied of rental units is greater than it would be under freely competitive markets. C) there is less government involvement in rental markets overall because there is a better supply of low-income housing. D) all renters are better off than under freely competitive markets.