The difference between the lowest price a firm would have been willing to accept and the price it actually receives from the sale of a product is called
A) marginal revenue. B) price differential. C) profit. D) producer surplus.
D
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
If the currency drain ratio is zero, which of the following situations leads to the greatest total increase in the quantity of money?
A) an increase in the monetary base of $250,000 when the desired reserve ratio is 15 percent B) an increase in the monetary base of $100,000 when the desired reserve ratio is 5 percent C) an increase in the monetary base of $120,000 when the desired reserve ratio is 10 percent D) an increase in the monetary base of $100,000 when the desired reserve ratio is 50 percent E) an increase in the monetary base of $200,000 when the desired reserve ratio is 20 percent
A price ceiling is non-binding when.
A. it is set above the equilibrium price. B. it is set below the equilibrium price. C. it reduces the output in a market. D. it increases the output in a market.
A monopolist produces in the elastic segment of its demand curve because when it lowers the price
A. the percentage change increase in quantity demanded is greater than the percentage change decrease in price and total revenue increases. B. the percentage change decrease in quantity demanded is less than the percentage change decrease in price and total revenue increases. C. the percentage change increase in quantity demanded is greater than the percentage change decrease in price and total revenue decreases. D. the percentage change increase in quantity demanded is less than the percentage change decrease in price and total revenue increases.