Consumer surplus ________
A) equals total revenue minus marginal cost
B) is maximized when the market outcome is efficient
C) equals total revenue minus opportunity cost
D) plus producer surplus is maximized when resources are used efficiently
D
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Use the figure below to answer the following question.
If a price ceiling in this market is set at P1, then deadweight loss equals area
A. f. B. b + d. C. d. D. d + h.
Referring to the previous question, what will happen to the equilibrium price and quantity of cars?
A) They will stay the same as domestic producers replace the cars once imported. B) The shortage will cause the equilibrium price to increase and equilibrium quantity will decrease. C) The surplus will cause equilibrium price to decrease and equilibrium quantity to increase. D) The shift in the demand curve will cause equilibrium price to increase and quantity to increase.
Economic growth is difficult for poor countries because
A. governments must fund capital production and research out of tax revenues. B. resources must be taken away from consumer goods to pay for capital goods. C. those wealthy enough to invest in domestic industries may choose to invest abroad instead. D. All of the choices are true.
When Ft McClellan closed down, the decline of production at the Fort fell by 500M. The economic impact on the area was even larger. Why was it larger?
a. people lost jobs at the fort, resulting in a loss of wages of 400M (Assume the MPC was 4/5) b. the military produced fewer high-tech goods in Calhoun County c. businesses located near to the Fort suffered losses in sales d. the positive impact on the environment of closing the Fort brought in many more tourism dollar than the loss of military jobs