In economics, the concept of surplus:
A. measures the benefit that people receive when they buy something for less than they would have been willing to pay.
B. measures the benefit that people receive when they sell something for more than they would have been willing to accept.
C. is the best way to look at the benefits people receive from successful transactions.
D. All of these are true.
D. All of these are true.
You might also like to view...
Refer to Table 4-6. The table above lists the marginal cost of polo shirts by Marko's, a firm that specializes in producing men's clothing. If the market price of Marko's polo shirts is $13, Marko's will produce
A) 1 shirt. B) 2 shirts. C) 3 shirts. D) 4 shirts.
In the classical model, high unemployment due to a change in aggregate demand
A) can persist for an indefinite period of time. B) will return to its normal level quickly as wages adjust. C) will persist if due to a supply shock but not if due to a demand shock. D) never exists because unemployment can never deviate from its normal level.
All of the following apply to the description of a market in equilibrium except:
A. quantity supplied equals quantity demanded. B. the intersection of the supply and demand curves. C. no excess supply exists. D. the price of the good is falling.
If the economy is operating on the long-run aggregate supply curve, then expansionary fiscal policy will
A. generate an increase in real GDP without higher prices in the short run, but then real GDP will return to its long-run level, and the price level will increase. B. generate higher prices in the short run, but will induce aggregate supply to increase in the long run. C. generate an increase in real GDP and higher prices in both the short run and the long run. D. generate an increase in real GDP and higher prices in the short run, but then real GDP will decrease to its long-run level, and the price level will increase some more.