According to the graph shown, if this economy were to open to trade, which amount of surplus would be transferred?
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. Area BC would be transferred to the consumer.
B. Area BCD would be transferred to the producer.
C. Area BCD would be transferred to the consumer.
D. Area BC would be transferred to the producer.
D. Area BC would be transferred to the producer.
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The two major reasons for the tremendous growth in output in the U.S. economy over the last 125 years are
A) population growth and low inflation. B) population growth and increased productivity. C) low unemployment and low inflation. D) low inflation and low trade deficits.
If the price of inputs rises and personal income taxes rise:
a. Aggregate demand rises, but aggregate supply does not change. b. Aggregate demand falls, and aggregate supply rises. c. Aggregate demand and aggregate supply rise. d. Aggregate demand and aggregate supply fall. e. Neither aggregate demand nor aggregate supply change.
When profit-maximizing firms in competitive markets are earning profits,
a. market demand must exceed market supply at the market equilibrium price. b. market supply must exceed market demand at the market equilibrium price. c. new firms will enter the market. d. the most inefficient firms will be encouraged to leave the market.
A "dirty float" is a system
A. Based on the gold standard. B. Of managed exchange rates. C. Of free-floating exchange rates. D. Of fixed exchange rates.