The gains from trade within a price system is
A) the sum of consumer surplus and producer surplus.
B) consumer surplus less producer surplus.
C) consumer surplus divided by producer surplus.
D) consumer surplus multiplied by producer surplus.
A
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Because of the productivity slowdown in the United States from the mid-1970s through the mid-1990s,
A) the standard of living increased in the United States. B) real GDP per capita grew more rapidly. C) real GDP per capita grew more slowly. D) the standard of living did not change.
Because the banking system operates using fractional reserves,
a. the money multiplier is greater than one. b. excess reserves are equal to zero. c. required reserves are equal to 100 percent. d. banks can loan out only their required reserves. e. the money multiplier must be equal to zero.
Profit-maximizing firms in a competitive market produce an output level where
a. marginal cost equals marginal revenue. b. marginal cost equals average total cost. c. marginal revenue is increasing. d. price is less than marginal revenue.
A tariff is a
A. subsidy to workers harmed by U.S. trade with foreign countries. B. limit on the quantities of a good that can be imported each year. C. tax on exports that tends to make them cheaper for foreigners to buy. D. tax on imports that raises their prices and makes them less attractive to domestic consumers.