If the government were to reduce its spending, it would be enacting:
A. contractionary fiscal policy.
B. expansionary fiscal policy.
C. a budgetary crisis intervention.
D. expansionary budgetary policy.
A. contractionary fiscal policy.
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Producer surplus is
A) the total difference between the total amount that producers actually receive for an item and the total amount that they would have been willing to accept. B) the total difference between the total costs firms incur in producing an item and the utility consumers derive from purchasing the item. C) the total difference between the total amount that consumers are willing to pay for an item and the total amount that producers would like to receive. D) the total difference between the utility consumers derive from purchasing an item and the total costs firms incur in producing the item.
When marginal costs are increasing:
A. a firm is experiencing diminishing returns. B. average cost is always increasing. C. average cost is always decreasing. D. marginal costs are always greater than average costs.