Producer surplus is represented by ______.
a. the area below the market supply curve and above the market price
b. a sharp downward slope of the supply curve
c. the area above the market supply curve and below the market price
d. the point where the supply and demand curves intersect
c. the area above the market supply curve and below the market price
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Which of the following sources of revenue is used to fund government spending?
A) political party contributions B) interest C) taxation D) corporate contributions
People hold money even during inflationary episodes when other assets prove to be better stores of value. This can be explained by the fact that money is
A) extremely liquid. B) a unique good for which there are no substitutes. C) the only thing accepted in economic exchange. D) backed by gold.