Refer to Figure 4-6. What area represents consumer surplus at P2?
A) B + C B) A C) A + B D) A + B + D + E
B
You might also like to view...
The law of one price does not hold for
A) agricultural goods. B) tradeable goods. C) differentiated goods. D) goods whose production causes pollution.
The equation of exchange states that: a. government spending = taxes plus the federal budget deficit
b. the reciprocal of the reserve requirement = the deposit expansion multiplier. c. the money supply times the velocity of money = the price level times the quantity of goods and services produced. d. the price level times the velocity of money = the money supply times the quantity of goods and services produced.
The Cold War has been over since 1991, and foreign aid:
A. proved to be an ineffective tool in preventing the spread of communism. B. is still used as an effective political strategy to prevent communism. C. continues and is still largely dedicated toward building public goods. D. has tapered off and is largely nonexistent now.
Which is the best example of a firm's implicit costs?
A) wages B) the opportunity cost of owner-provided labor C) rent D) taxes