The difference between a firm's total revenue and what must be paid to attract resources from their best alternative use is called
a. total revenue
b. utility
c. economic profit
d. cost
e. production efficiency
C
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The substitution effect is thought to dominate the behavior of low-wage workers.
Answer the following statement true (T) or false (F)
Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. If the price of iced tea is $3
A) economic surplus is maximized. B) the quantity demanded is economically efficient but the quantity supplied is economically inefficient. C) too many consumers want to buy iced tea. D) the quantity supplied is greater than the economically efficient quantity.
One difference from private insurance programs is that social insurance programs:
A. serve everyone who meets baseline eligibility requirements. B. use a sliding scale of payment based on ability to pay. C. are universally offered to everyone. D. None of these is true.
If full-employment output exceeds equilibrium output, greater deficit spending will result in a
A. Smaller recessionary gap. B. Larger recessionary gap. C. Smaller inflationary gap. D. None of the choices are correct.