The gains from consumer surplus and producer surplus occur when
A) both consumers and producers engage in voluntary exchange.
B) consumers are willing to buy a good but producers are not willing to provide it.
C) producers are willing to provide a good but consumers are not willing to pay for it.
D) the government supplies the good instead of firms.
A
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Would you rather receive $100 in eight years paying an interest rate of 10% or be given 48 dollars today?
A) I would rather receive 48 dollar today. B) I would rather receive $100 in eight years. C) I am indifferent between the two options. D) I cannot determine which I would prefer.
An example of a one-time expense for a shoe factory would be buying:
A. leather to make the shoes, and would be excluded from total cost. B. leather to make the shoes, and would be included in total cost. C. a sewing machine, and would be included in total cost. D. a sewing machine, and would be excluded from total cost.