The area below the demand curve and above the price line measures
A) consumer surplus.
B) economic profit.
C) elasticity of demand.
D) the total value obtained from consuming the good or service.
A
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According to supply-siders
a. there exists a temporary tradeoff between higher inflation and higher output growth. b. there exists a permanent tradeoff between higher inflation and higher output growth. c. there exists no tradeoff between higher inflation and higher output growth. d. there exists a temporary tradeoff between higher inflation and higher output growth during periods of low inflation only.
The situation in which the marginal product of labor is greater than zero and declining as more labor is hired is called the law of:
a. diminishing returns. b. negative response. c. inverse return to labor. d. demand.
An effective price floor on wheat will:
A. force otherwise profitable farmers out of business. B. result in a shortage of wheat. C. clear the market for wheat. D. result in a surplus of wheat.
Refer to Figure 1-2. Calculate the area of the triangle A
A) $1.3 million B) $2.6 million C) $3.4 million D) $5.2 million