Use the Following to Answer Questions 6-7

question 8

Multiple Choice

Use the following to answer questions 6-7:
Figure 10.1
-(Figure 10.1) Producer surplus under monopoly and under perfect price discrimination are _____ and _____, respectively.

• A) $16; $32
• B) $24; $48
• C) $8; $12
• D) $32; $12

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Definitions:

Supply-Side Economists

Economists who believe that reducing barriers to production and encouraging the supply of goods and services is the most effective way to stimulate economic growth.

Incentives

Rewards or penalties intended to motivate specific behaviors or actions among individuals or entities.

Yield Curve Spread

The difference in yields between two different debt instruments, often used to gauge economic expectations.

T-Bond Yield

The annual return investors earn on U.S. Treasury bonds, which is a benchmark for long-term interest rates.