Figure 3-17
Refer to . Area C represents
a.
the decrease in consumer surplus that results from a downward-sloping demand curve.
b.
consumer surplus to new consumers who enter the market when the price falls from P2 to P1.
c.
the increase in producer surplus when quantity sold increases from Q2 to Q1.
d.
the decrease in consumer surplus to each consumer in the market when the price increases from P1 to P2.
v
b
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If green bikes and brown bikes are perfect substitutes, the corresponding indifference curves
A) are horizontal. B) intersect each other. C) are vertical. D) have constant slope.
Vault cash is a(an)
A) liability of the Fed and is counted as reserves. B) asset of the Fed and is counted as reserves. C) liability of the Fed and is not counted as reserves. D) asset of the Fed and is not counted as reserves.
Which movement between two points represents economic growth?
A. J to K
B. K to L
C. L to M
D. M to N
Which of the following would do the most to reduce a trade deficit?
a. increase domestic saving b. increase domestic political stability and respect of property rights c. other countries reduce their trade restrictions d. raise tariffs