Refer to the graph shown. The firm's profit-maximizing price is:
A. g.
B. h.
C. e.
D. f.
Answer: A
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In the circular flow model of the market system, business firms
A. buy products and resources. B. buy products and sell resources. C. sell products and resources. D. sell products and buy resources.
If a price ceiling of $8 were placed in the market in the graph shown, which area represents deadweight loss?
A. F + G
B. B + D
C. E
D. B + D + F + G
Why do societies face a tradeoff between the size of the economic pie and the degree of equality with which it is shared?
What will be an ideal response?
The M1 definition of the money supply
A. includes only coins and currency. B. includes only things that can be used as a medium of exchange, while the M2 definition includes some things that cannot be used directly as a medium of exchange. C. includes some kinds of accounts that are not included in M2. D. tends to grow more rapidly than M2.