The sum of consumer surplus and producer surplus is equal to
A) total profit. B) zero.
C) the economic surplus. D) the deadweight loss.
C
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Economic rent applies to
A) land only and nothing else. B) real property only. C) all resources. D) any resource in fixed supply.
Depreciation is subtracted from GNP to determine:
A. net income. B. net national product (NNP). C. net GDP. D. net imbalance on exports.
How does a reduction in the price level affect the position of the C + I + G + X curve and in turn the equilibrium level of real GDP?
A) The C + I + G + X curve shifts down, thereby reducing the equilibrium level of real GDP. B) The C + I + G + X curve shifts down, thereby increasing the equilibrium level of real GDP. C) The C + I + G + X curve shifts up, thereby reducing the equilibrium level of real GDP. D) The C + I + G + X curve shifts up, thereby increasing the equilibrium level of real GDP.
While the slope of the perfectly inelastic supply curve ________, the slope of the perfectly elastic supply curve ________
A) is zero, approaches infinity B) approaches infinity, is zero C) is zero, is zero D) approaches infinity, approaches infinity