A seller's opportunity cost measures the
a. value of everything she must give up to produce a good.
b. amount she is paid for a good minus her cost of providing it.
c. consumer surplus.
d. out of pocket expenses to produce a good but not the value of her time.
a
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If national saving (S) is $100,000, net taxes (T) equal $100,000 and government expenditure (G) is $25,000, how much are households and businesses saving?
A) $25,000 B) $225,000 C) -$25,000 D) none of the above
Suppose Pippi buys an oven for her pizza parlor for $100,000. Pippi's pizza tasted so pitiful she went out of business 12 months later. She was able to sell the pizza oven for $75,000. This decrease in the value of the oven is
A) the total implicit rental rate on the oven. B) an economic loss. C) economic depreciation. D) interest forgone.
Technology standards work in reducing externalities of all kinds.
A. True B. False C. Uncertain
Answer the following questions true (T) or false (F)
1. Producer surplus is the difference between the highest price someone is willing to pay and the price he actually pays. 2. Producer surplus is the difference between the highest price a firm is willing to accept for a product and the price it actually receives for the product. 3. The total amount of producer surplus in a market is equal to the area above the market supply curve and below the market price.