The demand curve for cookies is a rightward curve and the quantity demanded is 100 when the price of cookies is $2.00. What happens to consumer surplus when the price is $3.00? What happens to consumer surplus when the price becomes $3? a. It will increase, but the amount of increase will be less than $100. b. It will increase, but the amount of increase will be greater than $100. b. Will increase, but the amount of increase will be greater than $100. c. Will decrease, but the decrease will be greater than $100. d. Will decrease, but the decrease will be less than $100.

The marginal change is a. Does not affect incentives. b. insignificant to public policy. c. a marginal change in an existing plan. d. a marginal change in an existing plan. c. It is a small change to an existing plan. d. It produces inefficient results.

When Japanese automaker Toyota expands one of its auto plants in the U.S., what effect will this event have on the U.S. Gross Domestic Product (GDP) and Gross National Product (GNP)? a. GNP rises and GDP falls b. GDP will increase substantially more than GNP c. GNP increases substantially more than GDP d. GDP rises and GNP falls

John earns $300 per semester as a teaching assistant (TA). When the university raises the amount paid to TAs to $400, Jasmine starts a new TA job. How much did this increase in payment increase the producer surplus? a. Between $200 and $300. b. Less than $100. c. Between $100 and $200. c. Between $100 and $200. d. More than $300.

Producing more than the supply-demand equilibrium is inefficient because the marginal buyer's payment allowance is ( ). a. between zero b. negative and c. positive but greater than the marginal seller's cost d. positive but less than the marginal seller's cost