In the figure above, the producer surplus is
A) $60,000.
B) $100,000.
C) $40,000.
D) $80,000.
E) $50,000.
C
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Residential investment includes spending by firms on office buildings
Indicate whether the statement is true or false
The high cost of advertising during the Super Bowl will
A) not affect the efficient level of output because advertising is a sunk cost. B) will affect the efficient level of output because profits will fall significantly. C) not affect the efficient level of output because advertising is a fixed cost. D) Not enough information given.
New classical economists stress that an increase in government expenditures financed by borrowing rather than taxes will
a. exert a strong expansionary impact on aggregate demand and real output. b. affect the timing of taxes but not their magnitude. c. lead to higher interest rates. d. undermine confidence and reduce the level of private saving.