If Ed is willing to pay a maximum of $200 for a tweed sport coat but buys one for $180, that $20 saved is
a. his reservation price
b. the store's producer surplus
c. his total expenditure
d. his marginal utility
e. his consumer surplus
E
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Technology has played a key role in changing the structure of the economy, which has increased the rewards for additional education and training. Greater access to education and training programs for all workers should therefore
A) play an important role in reducing income inequality. B) have a net effect of increasing income inequality. C) eliminate all income inequality. D) have little effect on the overall state of income inequality.
The absence of money illusion means that
A) as real income doubles, the demand for money doubles. B) as interest rates double, the demand for money doubles. C) as the money supply doubles, the demand for money doubles. D) as the price level doubles, the demand for money doubles.