If there are many suppliers of an input a firm is more likely to produce it internally than to purchase it in the market
Indicate whether the statement is true or false
false
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If demand is downward sloping and there is tax on the good, Consumer surplus equals
a. The area between the demand curve and the price, up to the equilibrium quantity. b. Total surplus minus producer surplus. c. Total surplus minus producer surplus and government tax revenue. d. Total surplus minus producer surplus, government tax revenue, and dead-weight loss.
What is the full-employment output level?
a. The output level that results when the loanable funds market clears b. The output level that results when the returns to labor are zero c. The output level that results when factories are completely full d. The output level that results when the labor market clears e. The output level that would occur if the output level was positive.
In the circular flow diagram, households supply __________ to business firms.
Fill in the blank(s) with the appropriate word(s).
Explain the concept of a backward-bending labor supply curve.
What will be an ideal response?