Given the scenario described, if the market price of hammers increased from $8 to $12, producer surplus would:
Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot can offer their hammer for a minimum of $7. Lace Hardware can offer the hammer for a minimum of $10. Bob's Hardware store can offer the hammer at a minimum price of $13.
A. increase from $8 to $12.
B. increase by $4 for each producer.
C. increase by $4 for House Depot.
D. increase by $7 in total.
C. increase by $4 for House Depot.
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If Finland has an absolute advantage in the production of two goods compared to Latvia, Finland can still benefit from trade with Latvia
Indicate whether the statement is true or false
Which of the following will cause a decrease in U.S. gross exports?
A. A decrease in foreign business purchases of U.S. output. B. An increase in foreign consumer income. C. An increase in foreign wealth. D. None of the choices are correct.
The concept that increased government spending will lead to lower investment and consumer spending is referred to as the
A. inflationary effect. B. Keynesian effect. C. crowding-out effect. D. recessionary effect.
Refer to the information provided in Figure 9.1 below to answer the question(s) that follow. 
Figure 9.1Refer to Figure 9.1. If this farmer maximizes profits, his average total cost will be
A. $7. B. $9. C. $11. D. $15.