Total economic surplus is represented by
A) The area below the demand curve and above the market equilibrium price.
B) The area below the demand curve and above the supply curve.
C) The area above the supply curve and below the market equilibrium price.
D) None of the above.
Answer: B
Economics
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What is one difference between stocks and bonds?
A) Bonds are purchased at a bank, while stocks are purchased through the federal government. B) Bonds earn a higher rate of return than stocks. C) Stocks earn a higher rate of return than bonds. D) Stocks represent partial ownership in a firm, while bonds do not.
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Entry into a monopolistic industry is
a. easy, but exiting is difficult b. impossible c. difficult, but not impossible d. difficult, but exiting is easy e. easier than entry into oligopoly
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