The economic surplus of an action is:
A. the benefit gained by taking an action.
B. the money a person has left over after taking an action.
C. the difference between the explicit and implicit costs of taking an action.
D. the difference between the benefit and the cost of taking an action.
Answer: D
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Refer to Figure 13-17. What is the productively efficient output for the firm represented in the diagram?
A) Qf units B) Qg units C) Qh units D) Qj units
If a competitive price-taking firm is operating in long-run equilibrium and market demand suddenly falls, the short-run result will be
a. greater economic profit. b. a normal profit. c. lower average total cost. d. lower average variable cost. e. economic losses.
Suppose that only 2 percent of all people are geniuses. If an IQ test indicates that Albert is a genius, but the test is only accurate 90 percent of the time, then the probability that Albert really is a genius is roughly:
A. 18 percent. B. 16 percent C. 10 percent. D. 2 percent.
The ________ the expenditures multiplier effect, the ________ the change needed in government spending to bring about a given amount of increase in real GDP.
A. smaller; smaller B. smaller; larger C. larger; faster D. larger; larger