Aggregate surplus:
A. equals consumers' total willingness to pay for a good less firms' total avoidable cost of production.
B. equals consumers' total willingness to pay for a good plus firms' total avoidable cost of production.
C. captures the total benefit created by the production and consumption of the good.
D. captures the total cost created by the production and consumption of the good.
A. equals consumers' total willingness to pay for a good less firms' total avoidable cost of production.
You might also like to view...
Modern portfolio analysis assumes that individuals
A) are risk-averse. B) attempt to maximize liquidity. C) attempt to maximize returns regardless of risk. D) never take risks.
For a whole life policy, the policy holder pays
A) premiums based on current interest rates. B) a constant premium. C) premiums that vary with mortality risk. D) constantly declining premiums.
Which of the following statements is NOT true during the colonial years, according to Hughes and Cain (2011)?
(a) Labor organizations were considered, by law, criminal conspiracies against society. (b) Colonial society provided for its aged and sick poor; others had to work. (c) Efforts to control wages and prices by governmental authority were present. (d) Compulsory labor applied only to slaves and indentured servants. (e) Idle persons were frequently jailed for the crime of having no visible means of support.
If the quantity supplied of candy increases by 10% when the price of candy increases by 20%, which of the following is TRUE?
A) Supply for candy is elastic, and price elasticity of supply = 2.0. B) Supply for candy is inelastic, and price elasticity of supply = 2.0. C) Supply for candy is elastic, and price elasticity of supply = 0.5. D) Supply for candy is inelastic, and price elasticity of supply = 0.5.