Graphically, producer surplus is the:
A) difference between the demand curve and the price a consumer pays.
B) difference between the supply curve and the price a consumer pays.
C) difference between total cost and total revenue.
D) product of price of a good and quantity sold.
B
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Mike Miller is the town manager of Medfield, a town with 50,000 residents. At a recent town meeting, several citizens proposed building a large public swimming pool in the center of town for all of the residents to enjoy. A survey of all 50,000 residents revealed that the pool would be worth $50 to each of them. Because the cost to build the swimming pool is only $1,000,000 . Manager Miller
arranges to have the pool built. Everyone in town enjoys the pool, but when Manager Miller asks for donations to pay for the pool, he only collects $250,000 . Manager Miller soon realizes that a. the survey was conducted improperly. b. the cost of the pool exceeded the social benefits. c. the pool is a club good. d. most residents of the town are probably free-riders at the pool.
Attributing the gender wage gap to ongoing discrimination by employers will likely be incorrect because
a. some of the wage gap is explained by efficiency wages. b. differences in years of work experience likely lead to productivity differences between men and women. c. compensating differentials usually lead to higher wages for women. d. All of the above are correct.
Extremely high rates of inflation such as that experienced by Nicaragua in the 1980s are described as
A. deflation. B. hyperinflation. C. disinflation. D. inflation.
When two variables have been observed to have a tendency to occur at the same time, we can say there is ________ but not necessarily ________.
A. positivity; causation B. causation; correlation C. normality; correlation D. correlation; causation