When a firm practices perfect price discrimination,
a. Consumer surplus is maximized
b. Producer surplus is minimized
c. Producer surplus is maximized
d. None of the above
c
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Refer to the figure above. If the engineer spends his entire time producing computer programs, how many computer programs can he produce?
A) 12 B) 30 C) 45 D) 50
The sum of consumer surplus and producer surplus is called economic surplus
Indicate whether the statement is true or false
Through specialization and international trade, a nation:
A. can attain some combination of goods lying outside its production possibilities curve. B. can move from a high consumption-low investment to a high investment-low consumption point on its production possibilities curve. C. will only attain some combination of goods lying within its production possibilities curve. D. will cause its production possibilities curve to shift leftward.
Which of the following is NOT a component of private investment, for purposes of GDP accounting?
A. newly produced housing B. additions to firms' stock of inventories C. purchases by firms of used machinery D. newly built factories