Consumer Surplus
What will be an ideal response?
The difference between the maximum price consumers are willing to pay and the the price they actually pay
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An understanding of the principles of public sector economics can help us create _____
a. innovative public policies b. a more effective government c. a protective government that better shields its citizens from risk d. new spending programs
A profit-maximizing firm in a perfectly competitive market will always produce a quantity of output that: a. minimizes the per-unit cost of production
b. is expected to maximize total revenue. c. maximizes the amount by which total revenue exceeds total cost. d. brings average total cost and price into equality.
Supply-side economists argue for substantial regulation in the economy, particularly in banking, energy, and transportation
Indicate whether the statement is true or false
If the government reduces transfer payments, what happens to the budget deficit? What curve does this change in the market for loanable funds, which direction does it shift, and what happens to the equilibrium interest rate?