Refer to Figure 9.3. If the government establishes a price ceiling of $1.00, total consumer and producer surplus will be
A) $1.50.
B) $300.
C) $450.
D) $500.
E) $600.
C
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Lattes at Starbucks are allocated to individuals in society through what type of method?
A) lottery B) contest C) sharing equally D) market price E) personal characteristics
Suppose that a firm has an average variable cost of $52.50 when producing 120 units of output. What is the firm's total variable cost?
What will be an ideal response?
In a competitive market equilibrium
A) marginal benefit and marginal cost are maximized. B) the marginal benefit equals the marginal cost of the last unit sold. C) total consumer surplus equals total producer surplus. D) consumers and producers benefit equally.
Most economists agree that modest inflation is desirable over zero inflation because:
A. it allows a margin of error for those deciding on the money supply. B. it allows the Fed to more easily engage in expansionary monetary policy. C. it helps firms to more easily adjust real wages. D. All of these statements are true.