Refer to Exhibit 10-2. At M,
a. TP > TE.
b. the relationship between TP and TE cannot be determined.
c. TE > TP.
d. TP = TE.
Ans: c. TE > TP.
You might also like to view...
What variable adjusts to balance demand and supply in the market for loanable funds?
Using the annuity rule, it follows that an annuity with a present value of $100 and an annual payment of $20 must have an interest rate of:
A. 10 percent. B. 20 percent. C. 5 percent. D. 2 percent.
If the demand curve reflects consumers' full willingness to pay, and the supply curve reflects all costs of production, then which of the following is true?
A. The benefit surpluses shared between consumers and producers will be maximized. B. The benefit surpluses received by consumers and producers will be equal. C. There will be no consumer or producer surplus. D. Consumer surplus will be maximized, and producer surplus will be minimized.
In calculating GDP, governmental transfer payments, such as Social Security or unemployment compensation, are:
A. not counted. B. counted as investment spending. C. counted as government spending. D. counted as consumption spending.