Producer surplus equals
a. Value to buyers - Amount paid by buyers.
b. Amount received by sellers - Costs of sellers.
c. Value to buyers - Costs of sellers.
d. Value to buyers - Amount paid by buyers + Amount received by sellers - Costs of sellers.
b
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Why do convex indifference curve have a negative slope?
A) because to keep utility constant, a consumer must get more of one good if she is to give up some of the other B) because scarcity implies that it is not possible to consume more of one good without giving up some of the other C) because consumers take market prices as given D) because consumers face a budget constraint
An increase in the money supply:
a. lowers the interest rate, causing a decrease in investment and an increase in GDP. b. lowers the interest rate, causing an increase in investment and a decrease in GDP. c. lowers the interest rate, causing an increase in investment and an increase in GDP. d. raises the interest rate, causing an increase in investment and an increase in GDP. e. raises the interest rate, causing a decrease in investment and a decrease in GDP.
Which combination of government policies would be most likely increase labor demand?
a. Increasing subsidies to education and increasing subsidies to businesses for hiring new employees b. Reducing income tax rates and cutting transfer payments to the needy c. Raising income tax rates and cutting transfer payments to the needy d. Reducing subsidies to education and increasing subsidies to businesses for hiring new employees e. Increasing subsidies to education and reducing subsidies to businesses for hiring new employees.
Economies of scale imply that within some range one can increase the size of operation and:
A. total cost will decrease. B. fixed cost will decrease. C. average total cost will decrease. D. average total cost will increase.