What area on a supply and demand graph represents producer surplus?
What will be an ideal response?
Producer surplus is the area above the supply curve and below the market price.
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In the above figure, when the economy is in a long-run equilibrium, real GDP will be
A) $15.5 trillion. B) $16.0 trillion. C) $17.5 trillion. D) $17.0 trillion.
Quotas and tariffs both serve the purpose of
A) increasing foreign trade. B) restricting foreign trade. C) causing domestic producers to lose revenues. D) lowering prices on imported goods.
The price of a new textbook is? $60 in one year and? $75 two years? later, while the price of a used copy of the textbook increased from? $25 to? $37.50. The relative price of a new textbook
A) increased by 25 percent.
B) increased from 2.4 to 3.
C) decreased from 2.4 to 2.0.
D) decreased from 1.4 to 1.25.
Which of the following situations would cause the greatest increase in labor productivity?
A. The increase in the employment rate is greater than the increase in capital. B. The employment rate remains the same and capital decreases. C. The employment rate increases and capital remains the same. D. The increase in capital is greater than the increase in the employment rate.