Figure 3-20
Refer to . If 40 units of the good are being bought and sold, then
a.
cost to sellers is equal to the value to buyers.
b.
the value to buyers is greater than the cost to sellers.
c.
the cost to sellers is greater than the value to buyers.
d.
producer surplus would be greater than consumer surplus.
b
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A scatter diagram with the price of peanut butter on the vertical axis and the price of jelly on the horizontal axis shows a negative relationship
If the price of jelly was placed on the vertical axis and the price of peanut butter was placed on the horizontal axis, the relationship would be a A) negative relationship, also called a direct relationship. B) negative relationship, also called an inverse relationship. C) positive relationship, also called a direct relationship. D) positive relationship, also called an inverse relationship.
Excessive government spending can cause demand-pull inflation
a. True b. False Indicate whether the statement is true or false
Refer to Figure 6.6, which shows a market for taxi medallions. If the number of taxi licenses is reduced from Q2 to Q1:
A. the gain in consumer surplus equals the loss in producer surplus. B. the gain in producer surplus equals the loss in consumer surplus. C. the gain in consumer surplus is greater than the loss in producer surplus. D. the gain in producer surplus is smaller than the loss in consumer surplus.
If output is greater than planned aggregate expenditure, there will be
A. an unplanned decrease in inventories. B. no change in inventories. C. an unplanned increase in inventories. D. a planned increase in inventories.