The difference between what producers receive at the market clearing price and the total amount that they would have been willing to accept for the total quantity produced in a market is called
A. producer surplus.
B. market surplus.
C. excess demand.
D. production excess.
Answer: A
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The above figure shows a nation's production function. Point B is
A) unattainable. B) attainable if the nation uses resources inefficiently. C) attainable if the nation uses resources efficiently. D) the maximum amount of real GDP the nation can ever produce. E) Both answers C and D are correct.
If an increase in price results in no change in total revenue, then demand must be
A) inelastic. B) elastic. C) unit elastic. D) infinitely elastic.
To enforce the optimum level of emissions a government could set an emissions standard at the quantity
A) where the MSB curve crosses the MCA curve. B) located at the vertical intercept of the MSB curve. C) located at the horizontal intercept of the MSB curve. D) located at the vertical intercept of the MCA curve. E) located at the horizontal intercept of the MCA curve.
Refer to the table below. If the profit for each unit of paper product is $2 and the profit for each unit of lumber is $5, what is the marginal benefit for each unit of lumber produced?
Big Oaks can produce either paper products or lumber with each tree that they harvest. Because Big Oaks can adjust the amount of paper products and lumber they produce from the harvested trees, paper products and lumber are produced in variable proportions. The above table summarizes Big Oaks production possibilities from each harvested tree.
A) $3
B) $7
C) $2
D) $5