Are consumer surplus and equilibrium price directly or inversely related? Explain your answer
Please provide the best answer for the statement.
Consumer surplus is inversely related to price. Consumer surplus is measured by calculating the difference between the maximum price a consumer would be willing to pay and the actual price. As the equilibrium price increases, the difference between the maximum price the consumer will pay and the equilibrium price decreases. Thus the consumer surplus decreases.
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Cyclical unemployment results from
A. technological change. B. the decreasing relative importance of goods and the increasing relative importance of services in the U.S. economy. C. a deficiency of spending on goods and services. D. the everyday dynamics of a free labor market, with workers voluntarily changing jobs.
A ________ system is one in which households pay the same percentage of their incomes in taxes regardless of their income level
A) progressive B) regressive C) proportional D) complementary
Domestic law and order, the infrastructure, and the climate of international trade are all aspects of a country's:
a. natural resources endowment. b. human resources investment. c. capital investment. d. political environment.
According to the policy irrelevance proposition
A. expansionary monetary policy will only lead to a higher rate of inflation in the long run. B. monetary policy can effectively reduce the rate of unemployment in the short run. C. workers are not rational in the long run. D. the Phillips curve slopes upward, not downward as traditionally assumed.