The figure above shows the market for pants. If 6 million pairs of pants are produced, the deadweight loss is
A) zero.
B) the triangle ABE.
C) the triangle BCE.
D) the triangle ACE.
E) the triangle BCE minus the triangle ABE.
A
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When you join the local organic food market and then buy produce each month, money is used as
A) only a store of value. B) only a unit of account. C) a medium of exchange and a store of value. D) a medium of exchange and a unit of account. E) a store of value and a unit of account.
If the income elasticity of demand is negative, this means that the good is
a. an inferior good b. sold at a lower than equilibrium price c. provided by a monopoly producer d. provided by competitive producers e. a normal good
By December 2008, the federal funds rate was approaching the zero lower bound
a. True b. False
In the circular-flow diagram, which of the following items flows from households to firms through the markets for the factors of production?
a. goods and services b. land, labor, and capital c. dollars spent on goods and services d. wages, rent, and profit