Refer to Figure 4-6. What area represents consumer surplus at the equilibrium price of P1?
A) D + E B) A C) A + B + C + D + E D) A + B + C
D
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The Bulgarian currency, the lev, is pegged to the euro at a rate of 1.96 leva (leva is the plural of lev) to the euro. At the pegged exchange rate, how many euros would be exchanged for one lev?
A) 0.51 B) 1.00 C) 1.96 D) 3.84
Which of the following is an accurate statement about an increasing-cost industry?
a. Input prices stay the same as an industry uses a large portion of the input. b. Input prices stay the same as an industry uses a small portion of the input. c. Input prices rise as an industry uses a large portion of the input. d. Input prices drop as an industry uses a large portion of the input
Which of the following factors strengthens the case for policy activism?
A. flexible prices B. lack of real-business-cycles C. flexible wages D. sticky prices
Which is an example of a nontariff barrier (NTB)?
A. An export subsidy. B. An excise tax on the physical volume of imported goods. C. Box-by-box inspection requirements for imported fruit. D. An excise tax on the dollar value of imported goods.