What does producer surplus measure?
a) the well-being of society as a whole
b) the well-being of sellers
c) the well-being of buyers and sellers
d) the well-being of buyers
Ans: b) the well-being of sellers
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When a firm becomes so large it is difficult to coordinate and control, it is most likely that
A) economies of scale have begun. B) diseconomies of scale have begun. C) average total cost begins to fall. D) long-run average costs become negative. E) there are increasing marginal returns to increasing the firm's plant size.
An example of someone bearing the burden of a negative consumption externality would be
A) Taylor living downwind from a feedlot. B) LaShawn grows beautiful roses in her garden. C) Jess's roommate smokes and she doesn't. D) All of these are examples of someone bearing the burden of a negative consumption externality. E) None of these is an example of someone bearing the burden of a negative consumption externality.
Which of the following macroeconomic variables is not in the equation of exchange?
a. Real GDP. b. Real exchange rate. c. Velocity of money. d. Money supply. e. All of the above are part of the equation of exchange.
Which of the following statements is correct?
a. Opportunity costs equal explicit minus implicit costs. b. Economists consider opportunity costs to be included in a firm's total revenues. c. Economists consider opportunity costs to be included in a firm's costs of production. d. All of the above are correct.