Consumer surplus is
a. the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.
b. the amount a buyer is willing to pay for a good minus the cost of producing the good.
c. the amount by which the quantity supplied of a good exceeds the quantity demanded of the good.
d. a buyer's willingness to pay for a good plus the price of the good.
a
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The average number of weekly hours worked in manufacturing began to decline during World War I (1914–18)
Indicate whether the statement is true or false
Which of the following would best encourage investment in human capital?
a. Higher marginal tax rates on labor income b. Higher interest rates c. Expansion of college loan programs d. A decrease in the wage gap between high school and college-educated workers e. A reduction in life expectancy that encourages earlier retirement
Under perfect competition, regarding short-run profit, a firm may find itself losing money. This is true because:
a. the firm was unable to pick the output that maximized profit b. the market conditions make the highest possible profit a negative number c. the demand for its product is weak or its costs are high d. both b and c
Inoculation programs against certain diseases such as small pox, polio, and whooping cough create
a. public goods. b. positive externalities in consumption. c. nonrival goods. d. nonexcludable goods. e. external costs to society equal to the costs of the program.