Refer to the figure above. What does the region EFG represent?
A) Consumer surplus
B) Producer surplus
C) Deadweight loss
D) Economic profit
C
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Suppose the target exchange rate set by the Fed is 100 guilders per dollar. If the demand for dollars temporarily decreases, to maintain the target exchange rate, the Fed can
A) sell dollars. B) buy dollars. C) increase U.S. exports. D) increase U.S. imports.
In the simple Keynesian model of the determination of income, planned investment is
A) an endogenous parameter. B) autonomous and thus an exogenous parameter. C) explained by the model of income determination. D) None of the above.
Theory in economics
a. involves some simplification of reality b. bears no relation to reality c. approaches reality in all its complexity d. involves so much distortion of reality that it is worthless e. focuses on the unique aspects of each situation
The rich pay a _____ proportion of their income and a _____ dollar amount of federal income tax than the middle class.
A. higher; higher B. lower; lower C. higher; lower