The total economic gain from trade equals ______.
a. the sum of consumer and producer surpluses
b. the difference between consumer and producer surpluses
c. the value of consumer surplus minus production costs
d. the amount of producer surplus reinvested in trade
a. the sum of consumer and producer surpluses
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The impact of an increase in the wage rate on labor supply will be represented by ________, assuming all else equal
A) a rightward shift of the labor supply curve. B) a leftward shift of the labor supply curve. C) an upward movement along the labor supply curve. D) a downward movement along the labor supply curve.
Changes in total factor productivity are plausible causes of business cycles because
A) of the welfare theorems. B) the U.S. government is following supply-side economic policy. C) the model matches many stylized facts. D) prices are countercyclical.
The yield percentage of a stock is calculated as
A) the corporation's net worth divided by the number of shareholders. B) the book value of the stock divided by the number of shareholders. C) the stock dividend divided by the price of the stock. D) the expected appreciation of the stock.
The total of producer and consumer surplus is maximized when there is overproduction.
Answer the following statement true (T) or false (F)