Consumer surplus is the amount a buyer is willing to pay for a good minus the amount the buyer actually has to pay for it.
Indicate whether the statement is true or false.
Answer: True.
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Total cost divided by the total number of inputs is called:
a. marginal cost b. average cost c. total cost d. variable cost
Two goods are complements if a decrease in the price of one causes an increase in the demand for the other good
a. True b. False Indicate whether the statement is true or false
The unemployment rate will increase whenever there is
a. an increase in the number of persons classified as unemployed. b. an increase in the number of unemployed persons relative to the size of the labor force. c. an increase in the size of the U.S. population and there is no change in the number of persons classified as employed. d. a reduction in the size of the labor force while the number of unemployed decreases.
In providing a legal framework, the government
A. Protects patents to encourage entrepreneurship. B. Protects the ownership of private property to encourage the private sector. C. Protects copyrights to encourage textbook protection. D. All of the choices are correct.