What is one reason activists might lobby the government for regulation limiting the production of a product to less than would normally be in a perfectly competitive market?
A) They value consumer surplus more than producer surplus.
B) They value producer surplus more than consumer surplus.
C) They seek to avoid future regulation.
D) They seek to minimize total surplus.
B
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How will a decrease in price tend to affect supply?
A. Supply will increase. B. Supply will decrease. C. Supply will not change. D. Uncertain.
Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. If 10,000 units of iced tea are sold
A) the deadweight loss is equal to economic surplus. B) producer surplus equals consumer surplus. C) marginal benefit is less than marginal cost. D) the marginal benefit of each of the 10,000 units of iced tea equals $3.
When there is dissaving
A. both the APC and APS are positive. B. both the APC and APS are negative. C. the APC is positive and the APS is negative. D. the APC is negative and the APS is positive.
Whose An Essay on the Principle of Population argued that human living standards could only temporarily rise above subsistence?
A. Adam Smith. B. Thomas Malthus. C. John Maynard Keynes. D. Alfred Marshall.