Producer surplus:
A. is the difference between the maximum prices consumers are willing to pay for a product
and the lower equilibrium price.
B. rises as equilibrium price falls.
C. is the difference between the minimum prices producers are willing to accept for a product
and the higher equilibrium price.
D. is the difference between the maximum prices consumers are willing to pay for a product
and the minimum prices producers are willing to accept.
Answer: C
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As the U.S. dollar appreciates relative to other currencies, the dollar price of goods imported to the U.S. ________, causing net exports and GDP to ________.
A. rises; fall B. falls; fall C. rises; rise D. falls; rise
What is the range of the required reserve ratio?
a. Between 0 and 2 b. Between 0 and 1 c. Between 0 and 100 d. Between 0 and infinity e. Between 0 and 10
The commercial value of ivory is a threat to the elephant, but the commercial value of beef is a guardian of the cow. This is because
a. the cow is raised in developed countries, while the elephant lives primarily in less-developed countries. b. cows are private goods, while elephants tend to roam freely without owners. c. cows and elephants are public goods, but ivory is nonrival. d. ivory is nonrival and nonexclusive, but beef is rival and exclusive.
A movement up the Phillips curve will cause
A. A decrease in both unemployment and inflation. B. A trade-off between unemployment and inflation. C. An outcome known as stagflation. D. An increase in both unemployment and inflation.