Producer surplus is
A. the total difference between the total costs firms incur in producing an item and the utility consumers derive from purchasing the item.
B. the total difference between the utility consumers derive from purchasing an item and the total costs firms incur in producing the item.
C. the total difference between the total amount that producers actually receive for an item and the total amount that they would have been willing to accept.
D. the total difference between the total amount that consumers are willing to pay for an item and the total amount that producers would like to receive.
Answer: C
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The table above gives data for the nation of Pearl, a small island in the South Pacific. When the economy is at full employment the price level is
A) 150. B) 110. C) 130. D) 140. E) 120.
A monopolist union that desired to maximize its total wage bill ( ) would offer that quantity of labor for which
a. labor's marginal productivity is zero. b. labor's wage falls to zero. c. the quantity of labor hired is as great as possible given the firm's demand curve. d. the marginal revenue from providing one more worker to the market is zero.
Some evidence suggested that intra-industry trade between similar countries had a _______ impact on domestic workers but later evidence indicates that it all depends on how ______ the labor market is.
a. small; sticky b. large; sticky c. small; flexible d. large; flexible
Interest rate (on any bond) is equal to
A. Sum of risk free (Treasury) interest rate + risk premium. B. Risk free ( Treasury) interest rate – risk premium C. Risk free (Treasury) interest rate. D. None of these.