Producer surplus is
A. the difference between willingness to sell and full costs of productions for the firm.
B. the difference between current market price and full costs of production for the firm.
C. current market price.
D. the difference between the maximum a person is willing to pay and current market price.
Answer: B
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Which of the following statements is correct?
a. Public ownership is preferred to regulation in order to minimize the dead weight losses associated with natural monopolies b. Antitrust laws are always the best way to limit monopoly power. c. It is possible that the best approach to monopolies is for the government to do nothing. d. Marginal-cost pricing requires a natural monopoly to earn zero economic profits..
Explain the economic concept of opportunity cost
What will be an ideal response?
The theory of rational expectations states that
a. expected inflation will be no different from actual inflation, on average. b. expectations are based on all possible information. c. individuals always act optimally. d. expected inflation will be lower than actual inflation.
Which of these conclusions does the graph U.S. Unemployment by Race or Ethnic Group support?
a. Businesses tend to give jobs to white workers before they will hire black or Hispanic
workers.
b. The unemployment rate for Hispanic workers is determined by whether employers
perceive them as white or black.
c. White workers have a lower unemployment rate because they make up less of the
U.S. workforce than black and Hispanic workers.
d. White, black, and Hispanic workers all constitute roughly the same proportion of the U.S. workforce.