This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
According to the graph shown, if this economy were an autarky, consumers would get area ________ in consumer surplus:
A. ABCDE.
B. ABC.
C. A.
D. ABCDEFG.
Answer: B
You might also like to view...
When the price of one good decreases, such as hot dogs, it may also increase the demand for other, related goods, like mustard.
Answer the following statement true (T) or false (F)
Within the Keynesian cross, the adjustment towards equilibrium occurs through:
A) inflation. B) inventories. C) interest rates. D) none of the above.
If people did not deposit their money in banks, banks would
a. not be affected because banks do not rely on deposits to make loans b. have unused excess reserves that earn them no interest c. be able to expand the money supply by more than the money multiplier indicates d. disappear because they would have no deposits and could make no loans e. not be able to find new borrowers thus restricting their banking activity
A decrease in the price level makes consumers feel wealthier, so they purchase more. This logic helps explain why the aggregate demand curve slopes downward
a. True b. False Indicate whether the statement is true or false