Producer surplus refers to
a. the difference between the market price for a good and the minimum price the producer would accept
b. the difference between the market price for a good and the maximum price a consumer would be willing to pay
c. the excess supply a firm produces for the market
d. the profit a producers receives for a good
e. the difference between consumer surplus and the price of the good
A
You might also like to view...
In a matched sale-purchase transaction, the Fed
A) buys securities from a dealer and the dealer agrees to buy them back. B) sells securities to a dealer and the dealer agrees to sell them back. C) buys securities from one dealer and sells the same dollar amount of securities to another dealer. D) sells securities to one dealer and buys the same dollar amount of securities from another dealer.
If the government wished to shift aggregate demand to the left, it might:
A. decrease military spending. B. increase the amount of educational grants available. C. decrease corporate income taxes. D. All of these would cause a decrease in aggregate demand.
On the basis of the equation of exchange, the policy makers of an economy predicted that an increase in money supply would result in an increase in real gross domestic product. This prediction was based on the assumption that: a. there were no fluctuations in the interest rate
b. the velocity of money in the economy did not increase. c. the nominal gross domestic product of the economy was constant. d. the discount rate was fixed.
Medical doctors earn higher incomes than Ph.D.s in economics. This is partly because:
A. medical doctors are more likely to face malpractice lawsuits. B. the costs of receiving necessary medical education are higher. C. a relatively small number of students are admitted to medical schools. D. All of these