When a perfectly competitive, well-functioning market is in equilibrium:
A. producer surplus is minimized.
B. total surplus is zero.
C. total surplus is maximized.
D. consumer surplus is minimized.
Answer: C
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Horizontal equity is achieved when taxes are collected from those who benefit from the government expenditure of the tax revenue
Indicate whether the statement is true or false
What is an important difference between certificates of deposits (CDs) worth less than $100,000 compared to those worth $100,000 or more?
What will be an ideal response?
The unemployment rate will decrease whenever there is
a. an increase in the number of persons classified as unemployed. b. a decrease in the number of unemployed relative to the size of the labor force. c. a decrease in the size of the population and there is no change in the number of persons classified as employed. d. a reduction in the size of the labor force. e. a decrease in the number of unemployed and the population does not change.
Which of the following adjusts to bring aggregate demand and aggregate supply into balance?
a) the price level but not the quantity of output b) the quantity of output but not the price level c) both the price level and the quantity of output d) variables other than the price level and the quantity of output