Total producer surplus in a market is measured as the
A. area bounded above the market clearing price and beneath the market demand curve.
B. vertical distance from the horizontal (quantity) axis to the market clearing price.
C. area bounded below the market clearing price and above the market supply curve.
D. horizontal distance from the vertical (price) axis to the equilibrium quantity.
Answer: C
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Consider a diagram in which the variable measured on the y-axis remains constant while the variable measured on the x-axis increases. The graph is of this relationship is a
A) perpendicular line. B) line with slope equal to zero. C) line that has positive slope. D) line that has a negative slope.
Increasing the growth rate of GDP per capita and sustaining this growth rate in an economy can
A) increase the level of poverty. B) lower life expectancy. C) increase infant mortality. D) increase standards of living.
The first important federal law passed to regulate monopolies in the United States was the
A) Sherman Act. B) Cellar-Kefauver Act. C) Federal Trade Commission Act. D) Clayton Act.
Monopolistic competition does not display allocative efficiency in either the short run or the long run
a. True b. False Indicate whether the statement is true or false