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.
1. FALSE
2. FALSE
3. TRUE
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The driving force behind the increase in FDI within developed economies is
A) cross-border mergers and acquisitions. B) the international financial architecture. C) the stabilization of international currencies. D) the accumulation of government debt.
A characteristic of an efficient market is that
A) prices are equal for all securities. B) bid-asked spreads are large. C) prices reflect all available information. D) all investors receive a positive rate of return.