Assume a market that has an equilibrium price of $7. If the market price is set at $3, which of the following is true?
A. Some surplus is transferred from consumers to producers, but total surplus falls.
B. All surplus is transferred from producers to consumers, and total surplus stays the same.
C. Some surplus is transferred from producers to consumers, but total surplus falls.
D. Some surplus is transferred from consumers to producers, causing total surplus to increase.
C. Some surplus is transferred from producers to consumers, but total surplus falls.
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What is the good or service is given the most weight in the CPI?
A) housing B) apparel C) recreation D) food and beverages E) transportation
In the short run, the price level
a. will decrease if unit costs and markups both increase throughout the economy b. will remain stable if unit costs increase throughout the economy c. is unimportant in macroeconomics d. will increase if unit costs increase throughout the economy e. is determined by the Fed
A tariff on a product
a. enhances the economic well-being of the domestic economy. b. increases the domestic quantity supplied. c. increases the domestic quantity demanded. d. results in an increase in producer surplus that is greater than the resulting decrease in consumer surplus.
Which of the following is most likely to increase the incentive to invest, produce, and employ others?
What will be an ideal response?