Which of the following statements best describes consumer surplus in the supply and demand model?
a. Consumer surplus is the area in the supply and demand model that is above the market price and above the demand curve.
b. Consumer surplus is the area in the supply and demand model that is below the market price and below the demand curve.
c. Consumer surplus is the area in the supply and demand model that is above the market price and below the demand curve.
d. Consumer surplus is the area in the supply and demand model that is below the market price and above the demand curve.
c. Consumer surplus is the area in the supply and demand model that is above the market price and below the demand curve.
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If the credit market is close to being a competitive market, an interest rate ceiling imposed by usury laws will bring misallocations of resources
a. True b. False Indicate whether the statement is true or false
What is the most appropriate test to evaluate whether a government-spending program will improve living standards and lead to higher income levels?
A) The value of the output generated by the government-spending program compared to its opportunity cost B) The total number of jobs created by the program C) The reduction in the rate of unemployment as the result of the spending on the program D) The taxes necessary to finance the program compared to the revenues generated by the additional employment created by the program
Core inflation is defined as
A. inflation that takes health care and energy into account. B. inflation that does not take health care and energy into account. C. inflation that does not take energy and food into account. D. inflation that takes energy and food into account.
In order to be drawn correctly, the minimum of the ATC is
A. to the right and up from the minimum of the MC. B. to the right and down of the minimum of the AVC. C. vertically straight up from the minimum of the AVC (neither to the right nor left). D. to the left and down of the minimum of the AVC.