The maximum amount Jameson would be willing to pay for a cupcake, less the price he actually pays, is called
A) consumer surplus.
B) producer surplus.
C) cooperative surplus.
D) deadweight loss.
A
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The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
The objects that we use as money today are
A) checks and credit cards. B) currency and checks. C) currency and deposits. D) deposits and checks. E) currency, deposits, and gold.
In a perfectly competitive market, positive economic profits act to
A. attract new entrants into the industry. B. prevent reinvestment on the part of firms within the industry. C. drive potential competitors away from the industry. D. signal resource owners elsewhere not to invest their capital in this industry.
Output regulation is likely to result in
A. Profit maximization for the monopolist. B. A surplus of the product. C. An increase in the cost of subsidies. D. A decline in the quality of the product.