Graphically, Producer Surplus Is Measured as the Area

question 16

Multiple Choice

Graphically, producer surplus is measured as the area

• A) under the demand curve and below the actual price.
• B) under the demand curve and above the actual price.
• C) above the supply curve and above the actual price.
• D) above the supply curve and below the actual price.

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Definitions:

Unemployment

The situation when individuals who are capable of working are unable to find a job.

Normative

Relating to principles or rules of right conduct or the distinction between right and wrong; ethical.

Minimum Wage

The lowest legal salary that employers can pay workers, intended to protect workers from unduly low pay.

Positive Economic Statement

An objective statement based on facts and evidence that can be tested and validated, concerning how the economy works.