If Mateo is paid $25,000 to sell his crop of tomatoes even though he would have been willing to have sold the crop for as little as $20,000, this indicates that
a. Mateo received no producer surplus from the transaction.
b. Mateo received $5,000 of producer surplus from the transaction.
c. Mateo received $20,000 of producer surplus from the transaction.
d. Mateo received $25,000 of producer surplus from the transaction.
B
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Suppose there is some unemployment in the economy and society decides that it wants more of one good. Which of the following statements is true?
A) It will have to increase resource supplies. B) It can increase output without giving up another good by employing more resources. C) It is not possible to achieve this unless technology advances. D) It will have to give up production and consumption of some other good.
The price level effects consumer spending through changes in real
a. disposable income. b. interest rates. c. wealth. d. GDP.