Which of the following is true about producer surplus?
a. Producer surplus is how much more it costs sellers than they are paid
b. Producer surplus is shown graphically as the area under the demand curve but above the supply curve.
c. An increase in the market price due to an increase in demand will increase producer surplus.
d. All of the above are true about producer surplus.
c
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Fiat money is money backed by
a. gold owned by the government. b. a commodity held by the government. c. trust in the government issuing it. d. bartering between consumers.
Because the marginal tax rate rises as income rises,
a. higher income families, in general, pay a larger percentage of their income in taxes. b. lower income families, in general, pay a larger percentage of their income in taxes. c. a disproportionately large share of the tax burden falls upon the poor. d. higher income families pay the same percentage of their income in taxes as lower-income families.
In an economy that experiences no change in its stock of capital:
A. net investment is zero. B. the consumption of private fixed capital exceeds gross investment. C. gross investment is zero. D. no capital goods are being produced.
The difference between GNP and GDP is accounted for by:
(a) Depreciation; (b) Net factor income from abroad; (c) Indirect Taxes/subsidies; (d) Transfer Payments.