Total surplus or gains created from trade equal
a. Seller surplus
b. Buyer surplus
c. The summation of seller and buyer surplus
d. Profits earned by a firm
c
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Gross domestic product is the money value of manufacturing production in a year.
Answer the following statement true (T) or false (F)
People react to an excess supply of money by:
a. selling bonds, thus driving up the interest rate. b. selling bonds, thus driving down the interest rate. c. buying bonds, thus driving up the interest rate. d. buying bonds, thus driving down the interest rate.
In the short run, an increase in investment, ceteris paribus, shifts the
A) AD curve to the right, causing equilibrium price level to rise and equilibrium Real GDP to increase. B) AD curve to the left, causing equilibrium price level to fall and equilibrium Real GDP to decrease. C) SRAS curve to the right, causing equilibrium price level to fall and equilibrium Real GDP to increase. D) SRAS curve to the left, causing equilibrium price level to rise and equilibrium Real GDP to decrease.
The law of one price states that if transportation costs are relatively small, then the:
A. price of an internationally traded commodity must be the same in all locations. B. nominal exchange rates for every country's currency must be equal. C. nominal exchange rate for a currency must equal the real exchange rate for that currency. D. producer with the lowest opportunity cost should be the only producer any commodity.