The total consumer surplus for good X can be calculated in all except one of the following ways. Which is the exception?
A) the sum, for all buyers of X, of the difference between what each buyer is willing to
pay for X and the amount actually paid
B) the area bounded by the demand curve for X and the two axes
C) the sum of the individual consumer surpluses for all buyers of X
D) the area below the demand curve for X and above the price of X
B) the area bounded by the demand curve for X and the two axes
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The 1980s were characterized by ________ monetary policy and ________ fiscal policy
A) tight; easy B) tight; tight C) easy; easy D) easy; tight
If the Fed sells securities on the open market, this will
a. decrease banks’ excess reserves. b. increase banks’ excess reserves. c. leave banks’ excess reserves unchanged. d. lower the reserve requirement.
The Secretary of Labor states that wage rates in the country have risen by 2 percent this past year. The head of a local labor union states that wage gains have not kept pace with the 3 percent rate of inflation. The Secretary's statement is a (n) ____ economic statement, and the labor head's statement is a (n) ____ economic statement.
A. normative; normative B. normative; positive C. positive; normative D. positive; positive
A rationale used for tariff protection by some is that
A) the country wants to practice international price discrimination. B) the country finds its cost of producing their products higher than in other countries. C) imports are produced by firms that received subsidies from their governments. D) imports are produced by firms that are more efficient than domestic producers are.