The difference between the maximum a person is willing to pay and current market price is known as
A. consumer surplus.
B. market surplus.
C. producer surplus.
D. nonprice surplus.
Answer: A
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If a nation has a higher level of technology than another nation it can produce:
A. more outputs with the same level of physical capital. B. less with the same amount of physical capital. C. more with no use of human capital. D. the same output with the same level of inputs.
Return
What will be an ideal response?
Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
Network externalities refer to the situation where the usefulness of a product increases with the number of consumers who use it
Indicate whether the statement is true or false