Refer to Figure 9-4. Suppose the government allows imports of leather footwear into the United States. The market price falls to $24. What area represents domestic producer surplus?
A) T + U B) V + W + X + Y C) W + X + Y D) V
D
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Considering the future
A) is irrelevant to macroeconomics. B) is key to macroeconomic modelling. C) has a limited impact on macroeconomic analysis. D) matters only under special circumstances.
According to the permanent income hypothesis, consumption spending depends largely on ________
A) current income B) the savings rate C) a consumer's lifetime resources D) the level of current income plus the value of the assets owned by the household
In a competitive market, the demand and supply curves are Q = 12 - P and Q = 5P, respectively. If output is fixed at Q = 5, what is the amount of the resulting deadweight loss?
A) 0 B) 5 C) 10 D) It cannot be determined without more information.
Under the initial Bretton Woods system,
a. foreign currencies could be converted into U.S. dollars, which could be redeemed for gold at a rate determined by supply and demand b. foreign currencies could be converted into U.S. dollars, which could be redeemed for gold at a rate of $35 per ounce c. foreign currencies could be converted into gold at a rate determined by supply and demand d. foreign currencies could be converted into gold at a rate of $35 per ounce e. gold was the international medium of exchange