We say that equilibrium in a perfectly competitive market is allocatively efficient because
a. the sum of consumer and producer surplus is maximized
b. the sum of consumer and producer surplus is minimized
c. the sum of consumer and producer surplus is zero
d. consumer surplus is maximized
e. producer surplus is zero
A
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Real GDP per person equals average labor productivity:
A. times one minus the unemployment rate. B. times the share of population employed. C. times the labor force participation rate. D. minus the share of population employed.
An increase in the nominal interest rate
A) shifts the demand for money curve rightward. B) shifts the demand for money curve leftward. C) leads to an upward movement along the demand for money curve. D) leads to a downward movement along the demand for money curve.
Equal increases in government spending and taxes will exactly offset each other, leaving the equilibrium level of output unchanged
Indicate whether the statement is true or false
On average professors of finance earn more than professors of economics. Other things the same, what does this imply about the supply of each type of professor?