producer surplus
What will be an ideal response?
-is the difference between the lowest price a supplier will accept to produce the good (the opportunity cost of the resources) and the price they actually get (the market price)
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Looking ahead to how the shopkeeper is more likely to respond what price should the customer more likely to quote?
a. High price b. Low price c. Let the shopkeeper quote the price d. A compromised price between the high and the low
The optimal number of units to produce is best expressed when:
a. marginal benefit exceeds marginal cost b. marginal cost exceeds marginal benefit c. marginal benefit and marginal cost are close to equal d. both a and c
If the percentage change in quantity is equal to the percentage in price, demand is said to be unit elastic
a. True b. False Indicate whether the statement is true or false
Which of the following does not describe the hypothesis that changes in technology have altered the relative demand for skilled and unskilled labor?
a. Firms rely more on computer databases than on paper filing systems so there is an increased demand for high-skilled computer programmers. b. Consumers can accomplish many simple banking tasks on an automated teller machine (ATM) rather than speaking to a bank teller so there is a decreased demand for low- skilled bank tellers. c. Transponders in peoples' vehicles can be used to automatically deduct tolls from debit accounts, reducing the need for low-skilled toll collectors. d. Improvements in technology have made tax preparation software easy for an average citizen to use, reducing the need for high-skilled accountants.