The amount that a seller is paid for a good minus the seller’s actual cost is called:
a. producer surplus.
b. consumer surplus.
c. total surplus.
d. demand surplus.
a. producer surplus.
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Goods that are produced this year, stored in inventories, and then sold to consumers next year
A) count in this year's GDP. B) count in next year's GDP. C) count in both this year's and next year's GDP. D) are not counted as a part of GDP.
From the perspective of households and businesses deciding where to deposit their money, the key advantage of the private loans issued by commercial banks is ________
A) transparency B) marketability C) incentive for the bank to collect information D) relatively high interest rates
Economic theory suggests that the standard of living of American workers would fall if the
a. knowledge and skills of workers improved, reducing the need for workers. b. United States had more natural resources. c. United States turned to more automated methods of production. d. productivity of American workers declined.
Suppose the economy is at a point below its institutional production possibilities frontier. To improve this situation, Keynesian economists might propose that the government should __________ expenditures, which will cause the aggregate demand curve to shift to the __________ in an attempt to close this __________ gap
A) decrease; left; inflationary B) increase; right; inflationary C) decrease; right; inflationary D) increase; right; recessionary E) decrease; left; recessionary