In a perfectly competitive market the long-run demand and supply curves are Q = 12 - P and Q = 5P respectively. Producer surplus in this market equals
A) 0.
B) 5.
C) 10.
D) It cannot be determined without more information.
C
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The relationship between the price level and the real Gross Domestic Product (GDP) without full adjustment or full information is represented by
A) the distance between the long-run aggregate supply curve and the short-run aggregate supply curve. B) the short-run aggregate supply curve. C) the long-run aggregate supply curve. D) the aggregate demand curve.
Any allocation resulting from a mutually beneficial trade is efficient.
Answer the following statement true (T) or false (F)
Assuming that C = $4,500, I = $1,000, G = $1,200, Exports = $450, Imports = $550, Depreciation = $600, and Indirect Business Taxes = $500 (all in billions of dollars), GDP equals:
A) $5,500 billion. B) $6,000 billion. C) $6,400 billion. D) $6,600 billion.
______________ accounts for interrelationships among markets.
Fill in the blank(s) with the appropriate word(s).