Producer surplus is the
A) cost of the good summed over the quantity sold.
B) demand for a good minus the supply summed over the quantity sold.
C) price of a good minus the marginal cost of producing it summed over the quantity sold.
D) marginal cost of producing it summed over the quantity sold.
C
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Which of the following is the most accurate statement about nominal and real interest rates?
a. Nominal and real interest rates always move together. b. Nominal and real interest rates never move together. c. Nominal and real interest rates often do not move together. d. Nominal and real interest rates always move in opposite directions.
Which of the following has occurred as a consequence of the Airline Deregulation Act of 1978?
a. Through mergers, airlines have formed an international cartel to restrict the number of flights and thus have successfully raised airline fares above the (inflation-adjusted) levels observed prior to deregulation. b. By 2000, airline fares were about 27 percent lower (in inflation-adjusted dollars) than before deregulation began, and there was a considerable increase in numbers of people flying. c. Deregulation weakened the power of airlines and strengthened the power of airline labor unions. Thus the Air Line Pilot's Association union was able to negotiate higher wages and a shorter work-month. d. Accident rates increased by 10 percent to 45 percent, depending on the specific measures used.
Between 2006 and 2008, the average price of homes decreased by what percent?
a. 2% b. 12% c. 22% d. 32%
If the Fed believes the inflation rate is about to increase, it should
A. Use a Contractionary fiscal policy to increase the interest rate and shift AD to left B. Use an expansionary monetary policy to lower the interest rate and shift AD to the right C. Use a contractionary monetary policy to increase the interest rate and shift AD to the left