Producer surplus in a perfectly competitive industry is
A) the difference between profit at the profit-maximizing output and profit at the profit-minimizing output.
B) the difference between revenue and total cost.
C) the difference between revenue and variable cost.
D) the difference between revenue and fixed cost.
E) the same thing as revenue.
C
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In the loanable funds market, if the interest rate is above the equilibrium level
A) there is a shortage of loanable funds. B) there is a surplus of loanable funds. C) expected profit falls. D) government expenditure decreases.
If the demand for a good is elastic, when the price increases, the
A) demand will decrease. B) quantity demanded will increase. C) quantity demanded will decrease by a smaller percentage than the price increased. D) quantity demanded will decrease by a greater percentage than the price increased.
Total fixed cost falls as output expands.
Answer the following statement true (T) or false (F)
When the Federal Reserve was formed, state-chartered banks were __________ Fed member banks
A) automatically made B) required to become C) given the option to become D) not allowed to become