Producer surplus is the difference between the highest price a firm is willing to accept for a product and the price it actually receives for the product
Indicate whether the statement is true or false
FALSE
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The objective of the household is to
a. maximize household wealth b. own as much land as possible c. save as much money as possible d. acquire as many goods as possible e. maximize utility
The real interest rate is defined as the:
a. actual interest rate. b. fixed-rate on consumer loans. c. nominal interest rate minus the inflation rate. d. expected interest rate minus the inflation rate.
What fiscal policies can be used to get the economy out of a contractionary gap?
a. Increase tax rates and increase government spending. b. Decrease tax rates and decrease government spending. c. Decrease tax rates and increase government spending. d. Increase tax rates and decrease government spending.
Which of the following describes the goal of labor unions?
a. Changing the balance of negotiations between employers and employees b. Lobbying federal, state, and local governments for employee benefits c. Requiring employers to address the needs of individual employees d. Redistributing wages and benefits among union members