Which of the following statements is true?
A) Producer surplus measures the total benefit received by producers from participating in a market.
B) When a market is in equilibrium consumer surplus equals producer surplus.
C) Consumer surplus measures the total benefit from participating in a market.
D) Consumer surplus measures the net benefit from participating in a market.
D
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According to the ability-to-pay principle of taxation
A) people in the same economic situation should bear an equal share of the tax burden. B) individuals who are willing to bear a greater share of the tax burden should be compensated with non-monetary benefits. C) it is fair to expect a greater share of the tax burden to be borne by people who have a greater ability to pay. D) individuals who receive the benefit of a good or service should bear a greater share of the tax burden.
A dominant-firm's residual demand curve is
A) the horizontal difference between the market demand curve and the supply curve of the fringe firms. B) the vertical difference between the market demand curve and the supply curve of the fringe firms. C) the demand curve left for the fringe firms after the dominant firm has determined an output level. D) None of the above.
In the aggregate expenditures model, if an economy operates below equilibrium GDP, there will be unplanned inventory accumulation
a. True b. False Indicate whether the statement is true or false
The accompanying graph shows the cost curves for Moe's mushroom gathering business, which is perfectly competitive. 
If mushrooms sell for $10 per bushel, and Moe chooses the profit-maximizing quantity, he will gather:
A. zero bushels. B. 20 bushels. C. 30 bushels. D. 50 bushels.