Economic efficiency is achieved when there is a market outcome in which the marginal benefit to consumers of the last unit produced is equal to its marginal cost of production and
A) the difference between consumer surplus and producer surplus is maximized.
B) economic surplus is minimized.
C) consumer surplus plus producer surplus is maximized.
D) economic surplus plus consumer surplus equals producer surplus.
C
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American households spend more of their incomes on goods than on services
a. True b. False Indicate whether the statement is true or false
The Keynesian perspective focuses on the demand-side of the economy;
What will be an ideal response?
The aggregate-demand curve
a. has a slope that is explained in the same way as the slope of the demand curve for a particular product. b. is vertical in the long run. c. shows an inverse relation between the price level and the quantity of all goods and services demanded. d. All of the above are correct.
Fixed costs exist only in:
A. labor-intensive markets. B. the long run. C. the short run. D. capital-intensive markets.