Total surplus is equal to
a. value to buyers - profit to sellers.
b. value to buyers - cost to sellers.
c. consumer surplus x producer surplus.
d. (consumer surplus + producer surplus) x equilibrium quantity.
b
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If the price level increases from 200 in year 1 to 220 in year 2, the rate of inflation from year 1 to year 2 is
A) 20%. B) 10%. C) 11%. D) 120%.
In Figure 15-2 above, the difference between consumption levels at point A and point B is equal to
A) the long run MPC times the change in disposable income. B) the short run MPC times the change in disposable income. C) (Y0 - Y2 ) times the short run change in income. D) the long run change in income times (Y0 - YP).
The developing world has been adamant that rich nations abandon farm subsidies in order to get a global trade deal both sides say they want.
Answer the following statement true (T) or false (F)
Price floors in agriculture lead to
A. the most efficient market solution. B. more competition in farming. C. surpluses of supported farm products. D. efficient farming techniques being employed.