The difference between the total willingness to pay for a good and the amount actually spent measures:
A) the total benefits from consuming the good.
B) the net gain from the production and consumption of the good.
C) the amount by which producers are better off, i.e., producers' surplus.
D) the amount by which consumers are better off, i.e., consumers' surplus.
D
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The rate of interest paid on a bond is called the
A) coupon rate. B) weighted average cost of capital. C) discount rate. D) all of these choices.
Figure 3-8
In , if the initial demand and supply for soybeans were D1 and S1, how would a decrease in the cost of producing soybeans affect the market for soybeans?
a.
Demand would increase to D2, price would increase to P2, and the quantity would increase to S.
b.
Supply would increase to S2, price would decrease to P0, and the quantity would increase to S.
c.
Both demand and supply would increase so the price would remain at P1, but the quantity would increase to T.
d.
None of the above would occur.