After a price floor of $23 is placed on the market in the graph shown, which area represents producer surplus?
A. B + C + D + F
B. B + C + D
C. B + E
D. B + C + E + F
Answer: C
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When people trade goods for money, money is being used as a medium of exchange.
Answer the following statement true (T) or false (F)
The official poverty rate for all persons declined sharply between 1959 and:
A. the 2000s. B. the 1970s. C. the 1980s. D. the 1990s.
If a perfectly competitive industry is neither expanding nor contracting, we would typically expect that: a. accounting profits to be zero
b. economic profits to be zero. c. the price of the good will be stable d. both (b) and (c) would be true.
A study of the market for optometrists' services in the 1960s showed that
a. all states in the United States prohibited advertising by optometrists. b. almost all professional optometrists opposed legal restrictions on their rights to advertise. c. the average price of eyeglasses would decrease if the legal restrictions on advertising by optometrists were removed. d. advertising on eyeglasses limited competition among optometrists.