Producer surplus is
a. measured using the demand curve for a good.
b. always a negative number for sellers in a competitive market.
c. the amount a seller is paid minus the cost of production.
d. the opportunity cost of production minus the cost of producing goods that go unsold.
c
You might also like to view...
A budget surplus occurs when ________
A) government spending exceeds tax revenue B) tax revenue exceeds government spending C) imports exceed exports D) exports exceed imports
Last year, the unemployment rate was 4 percent and the inflation rate was 3 percent. If the natural rate of unemployment is 3 percent, how do you expect inflation to change?
What will be an ideal response?
Assume a diagram in which a budget line is imposed on an indifference map. A consumer will maximize her utility:
A. at any point where the budget line and an indifference curve intersect. B. at either point where the budget line intersects the horizontal and vertical axes. C. where the budget line is tangent to an indifference curve. D. where the ratio of the two product prices equals the reciprocal of the consumer's income.
As contrasted to the Keynesian view, mainstream economists believe that ________ than Keynesian economists believe
A) the real GDP growth rate is larger B) any crowding out effect is smaller C) the effects from fiscal stimulus are weaker D) potential GDP is less important E) the multiplier effect is larger