The difference between the maximum price the consumer is willing to pay and the price the consumer actually pays for a product is referred to as:
a. market surplus
b. market shortage.
c. consumer surplus.
d. producer surplus.
c
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In which of the following cases does the benefit principle provide little guidance?
a. The benefits of the program are spread throughout the population. b. Gasoline taxes are used to fund highways. c. It is difficult to identify the beneficiaries of government programs. d. In cases a and c. e. In none of the above cases.
A shortage exists
A) in equilibrium. B) when quantity supplied is greater than quantity demanded. C) when quantity supplied is less than quantity demanded. D) at the market clearing price.
Financial institutions that receive most of their funds from the savings of the public are
A) the fiduciary monetary system. B) the world index fund. C) universal banking. D) thrift institutions.
The law of diminishing marginal utility implies that the marginal utility of my fifth hot dog is less than the marginal utility of my second soda
Indicate whether the statement is true or false