In the above figure, at the efficient quantity of CDs
A) total consumer surplus is zero.
B) total producer surplus is zero.
C) the sum of consumer surplus and producer surplus is maximized.
D) Both answers A and B are correct.
C
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In 2011, Armenia had a real GDP of approximately $4.21 billion and a population of 2.98 million. In 2012, real GDP was $4.59 billion and population was 2.97 million. From 2011 to 2012, Armenia's standard of living ________
A) increased B) decreased C) did not change D) might have increased, decreased, or remained unchanged but more information is needed to determine which
Government regulation in the form of subsidies, tariffs, licensing, and inspections does which of the following?
(a) Creates rents for businesses (b) Offers profits to some businesses at the expense of others (c) Encourages the inefficient use of productive resources (d) All of the above
Equilibrium in the money market exists when the quantity demanded of money equals the quantity supplied of money
Indicate whether the statement is true or false
Answer the following statement true (T) or false (F)
1) Producing a good in the least costly way is known as allocative efficiency. 2) A market that achieves productive efficiency is producing the quantity of goods most desired by society. 3) A market that is achieving allocative efficiency must also be achieving productive efficiency. 4) A government tax per unit of output reduces supply.