Total consumer surplus in a market is measured as the
A) area bounded above the market clearing price and beneath the market demand curve.
B) area bounded below the market clearing price and above the market supply curve.
C) vertical distance from the horizontal (quantity) axis to the market clearing price.
D) horizontal distance from the vertical (price) axis to the equilibrium quantity.
Answer: A
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A) a public good. B) a private good. C) a social good. D) an externality.
A family-owned business is likely to have a higher degree of control over management decisions than a corporation
Indicate whether the statement is true or false
National income is calculated as GDP:
A. plus depreciation. B. plus exports. C. minus imports. D. minus depreciation.
If the price system is allowed to function without interference and a surplus occurs, quantity demanded will _____________ and quantity supplied will _____________ until the price falls to its equilibrium.
A. rise; rise B. fall; fall C. rise; fall D. fall; rise