Use the following figure showing the domestic demand and supply curves for product B in a hypothetical economy to answer the next question.
After trade, at a world price of Pw, the net loss of producer surplus equals area(s)
A. B + C.
B. D.
C. E + F.
D. B + C + E + F.
Answer: A
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If the marginal net utility of beer is negative, the consumer should buy more beer in order to increase the total utility.
Answer the following statement true (T) or false (F)
A country that joins an exchange rate area
A) gives up its ability to use the exchange rate for the purpose of stabilizing output and employment. B) does not give up its ability to use the exchange rate and monetary policy for the purpose of stabilizing output and employment. C) gives up its ability to use the exchange rate and monetary policy for the purpose of stabilizing output and employment. D) gives up its ability to use only monetary policy for the purpose of stabilizing output and employment. E) does not gives up its ability to use only monetary policy for the purpose of stabilizing output and employment.
Mutual savings banks are primarily regulated by
A) the states in which they are located. B) the Federal Reserve. C) the FDIC. D) the National Credit Union Administration.
Double markup problems arise because
a. upstream firms have no market power b. downstream firms have no market power c. upstream and downstream products are unrelated in demand d. upstream and downstream firm's pricing decisions tend to decrease the demand for the other product