If the demand curve reflects consumers' full willingness to pay, and the supply curve reflects all costs of production, then which of the following is true?
A. The benefit surpluses shared between consumers and producers will be maximized.
B. The benefit surpluses received by consumers and producers will be equal.
C. There will be no consumer or producer surplus.
D. Consumer surplus will be maximized, and producer surplus will be minimized.
Answer: A
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Which of the following changes would NOT shift the aggregate demand curve?
A) a change in fiscal policy B) a change in monetary policy C) a change in expectations about future income D) an increase in technology
If the exchange rate between the U.S. dollar and the Russian ruble was 0.04 ($0.04 = one ruble), what would be the price in dollars of a bottle of Russian wine selling for 2,000 ruble?
a. $50 b. $80 c. $100 d. $500
Which of the following is not true about a profit-maximizing monopolist?
a. The monopolist faces the downward-sloping market demand curve. b. The monopolist always earns an economic profit. c. The price of output exceeds marginal revenue. d. The monopolist chooses output where marginal revenue equals marginal cost. e. All of these are true.
The population growth rate of the DVCs (developing countries) as a group in recent decades has been:
A. Steady B. Declining C. Rising modestly D. Rising rapidly