As price falls along a particular supply curve, producer surplus:
A. decreases.
B. remains constant.
C. increases rapidly.
D. increases a very small bit.
Answer: A
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A college must decide if it wants to offer more adult literacy classes. This decision involves answering the economic question of "what to produce."
Indicate whether the statement is true or false
When a person smokes a cigarette in his car and throws the butt out of the window, this is a(n)
A) marginal cost. B) external cost. C) average total cost. D) public cost.
The outward bowing shape of the production possibilities curve is due to
a. the law of increasing opportunity costs. b. the law of decreasing opportunity costs. c. the law of diminishing marginal utility. d. the diminishing marginal benefits.
As long as an item has never been sold, its value is counted in GDP for the year in which it is finally sold.
Answer the following statement true (T) or false (F)