The area beneath a consumer's demand curve out to the quantity purchased represents
a. consumer's surplus.
b. the region of mutual advantage.
c. the total value of the consumer's purchases.
d. the marginal value placed on the last unit consumed.
c. the total value of the consumer's purchases.
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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
A barter economy is an economy where
A) goods and services are exchanged for money. B) goods and services are exchanged for liabilities. C) money is exchanged for goods and services. D) goods and services are exchanged for other goods and services.
President Salinas of Mexico devised a strategy to restore Mexican growth by encouraging
A) large inflows of foreign capital. B) large increases in domestic savings. C) large interest rate cuts. D) an expansion of import substitution industrialization policies. E) more government ownership of industrial firms.
If all of the returns to a resource are in the form of economic rent,
a. the demand curve for that resource must be horizontal b. the demand curve for that resource must be vertical c. the supply curve of that resource must be horizontal d. the supply curve of that resource must be vertical e. the demand curve for that resource must be perfectly elastic