The above figure shows supply and demand curves for milk. In an effort to help farmers, the government passes a law that establishes a $3 per gallon price support. As a result, consumer surplus falls by
A) a.
B) b + f.
C) f + g.
D) b + f - c.
B
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Why does unemployment tend to change when the level of output changes?
A. Persons wish to buy things, and if output falls, people need to work less to earn the income to buy the smaller output. B. Labor is an input, and if output falls, employers need fewer workers to make it, so the employment falls. C. As output rises, more people are more interested in buying goods and services, and so these people work more to obtain the income needed to buy things. D. Persons face the option of buying or working, so that when they do more of one, the other necessarily falls. E. When companies replace workers with machines, output rises and people take more vacation time prior to returning to work.
The exchange rate changed from € 2.5/ $ to € 2.0/ $. Therefore:
a. The euro appreciated by 25% and the dollar depreciated by 20%. b. The euro depreciated by 25% and the dollar appreciated by 20%. c. The euro appreciated by 20% and the dollar depreciated by 25%. d. The euro depreciated by 20% and the dollar appreciated by 25%. e. The euro appreciated by 20% and the dollar depreciated by 20%.
A Nash equilibrium:
A. is a point in a game when no player has an incentive to change his or her strategy, given what the other players are doing. B. is a stable outcome of a game. C. is reached when all players choose the best strategy they can, given the choices of all other players. D. All of these statements are true.
Hyperinflation might lead to a severe decline in total output if
What will be an ideal response?