In Figure 22.2, which area represents total value to the smoker? 

A. 0BCQ*
B. 0P*CQ*
C. 0ACQ*
D. BP*C


Answer: C

Economics

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When you have diminishing marginal returns to labor

A) variable costs remain constant as more output is produced. B) variable costs fall as more output is produced. C) variable costs rise as more output is produced. D) fixed costs rise as more output is produced because you have to buy more equipment to compensate.

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According to the graph shown, total surplus is area:



A. A + B + C.
B. B.
C. A.
D. A + B.

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The statement "saccharine causes cancer" is not a theory; it is a hypothesis

a. True b. False Indicate whether the statement is true or false

Economics

If the MPC is 2/3, the initial impact of an increase of $12 billion in lump-sum taxes will be to cause:

A. a rightward shift in the investment demand schedule. B. an $8 billion downshift in the consumption schedule. C. a $4 billion upshift in the consumption schedule. D. a $12 billion downshift in the consumption schedule.

Economics