Consumer surplus is the amount a buyer is willing to pay for a good minus the amount the buyer actually has to pay for it
a. True
b. False
Indicate whether the statement is true or false
True
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Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
The relationship between the inputs employed by a firm and the maximum output it can produce with those inputs is called the firm's
A) total factor productivity. B) marginal production level. C) technological ratio. D) production function.
________ is a good measure of the opportunity cost of holding money
A) The real interest rate B) Liquidity preference C) Real income D) The inflation rate E) none of the above
When government gives a subsidy to buyers of good X, the benefits of the subsidy flow to
a. the buyers of good X only. b. the sellers of good X only. c. the buyers and sellers of good x equally. d. both the buyers and sellers of good x, and the distribution of the benefits will be dependent on the elasticity of demand and the elasticity of supply.