Suppose Gizmo Inc is willing to sell one gizmo for $10, a second gizmo for $12, a third for $14, and a fourth for $20, and the market price is $20 . What is Gizmo Inc's producer surplus?

When a domestic monopolist becomes subject to international competition, it faces:

a. a perfectly inelastic demand curve. b. a unitary elastic demand curve. c. a perfectly elastic demand curve. d. no demand curve.

Suppose the price level is fixed, the MPC is .8, and the GDP gap is a negative $200 billion. To achieve full-employment output (exactly), government should:

A. increase government expenditures by $200 billion. B. reduce taxes by $200 billion. C. increase government expenditures by $40 billion. D. reduce taxes by $160 billion.