How Rapidly Does the Economy's Self-Correcting Mechanism Work? Most Economists

question 130

Multiple Choice

How rapidly does the economy's self-correcting mechanism work? Most economists agree that it

• A)works quickly and reliably.
• B)works slowly and not very reliably.
• C)works reliably, but not very quickly.
• D)does not work at all.

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Definitions:

Producer Surplus

The difference between the amount producers are willing to accept for a good or service versus how much they actually receive.

Price

The budgeted sum anticipated, imposed, or tendered in indemnity for something.

Surplus Amount

The excess quantity of a product that occurs when the supply of the product exceeds the demand for it at a given price.

Consumer Surplus

A measure of the difference between the total amount that consumers are willing and able to pay for a good or service versus the total amount that they actually do pay.