Producer surplus is the:
a. number of producers who are excluded from a market because of scarcity.
b. amount of a good that a producers will sell at a price below the equilibrium price.
c. amount consumers actually pay for a good minus the amount the sellers are willing to sell the good.
d. amount consumers are willing to pay for a good minus the cost of producing the good.
c
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Suppose Bob works for Mary as a proofreader. Mary and Bob fall deeply in love, marry, and have eight children. Bob stops working for Mary in order to care for the children. What will be the effect on GDP?
A) GDP will increase. B) GDP will decrease. C) GDP will not change. D) GDP may increase or may decrease depending on inflation.
In the IS-LM model, equilibrium income can be affected by
A) fiscal policy alone. B) monetary policy alone. C) both fiscal and monetary policy. D) neither monetary nor fiscal policy.
If a price floor is set below the current market clearing price, then
A) a surplus must immediately occur. B) a shortage must immediately occur. C) there will be incentives for black markets to develop. D) quantity demanded will remain equal to quantity supplied at the current market clearing price.
This agency is responsible for preventing businesses from engaging in misleading advertising, unfair trade practices, and monopolistic actions, as well as for protecting consumer rights.
A. Environmental Protection Agency B. Food and Drug Administration C. Equal Employment Opportunity Commission D. Federal Trade Commission