When the Federal government cuts taxes and increases spending to stimulate the economy during a period of recession, such actions are design to be:

$2.98 is an example of

A) typical pricing. B) markup pricing. C) odd pricing. D) margin pricing.

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.