Economic efficiency is defined as a market outcome in which the marginal benefit to consumers of the last unit produced is equal to the marginal cost of production, and in which
A) the sum of the benefits to firms is equal to the sum of the benefits to consumers.
B) the sum of consumer surplus and producer surplus is minimized.
C) economic surplus is minimized.
D) the sum of consumer surplus and producer surplus is at a maximum.
D
Economics
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If you feel you are better off because you receive a 10 percent raise even when the price level also increases by 10 percent, then you are a victim of the
A) real purchasing power effect. B) money income effect. C) real income effect. D) money illusion.
Economics
The income elasticity of demand is ________ if the good is ________ good
A) positive; a normal B) positive; an inferior C) negative; a normal D) less than one; an inferior E) positive; a substitute
Economics