In Figure 3.2, what is the producer surplus? 
A. 0ACQ*
B. 0PCQ*
C. BP*C
D. P*AC
Answer: C
You might also like to view...
During the Christmas shopping season, the demand for money increases significantly. To offset the increase in money demand, the Fed must ________ the money supply, which will put ________ pressure on nominal interest rates.
A. decrease; downward B. increase; upward C. decrease; upward D. increase; downward
The signaling effect of foreign exchange intervention
A) never has any effect on exchange rates. B) can alter the market's view of exchange rates independent from the stance of monetary and fiscal policies. C) cannot cause an immediate exchange rate change when bonds denominated in different currencies are perfect substitutes. D) never leads to actual changes in monetary or fiscal policy. E) can alter the market's view of future monetary policies and cause an immediate exchange rate change.
Suppose that the market for salad dressing is in equilibrium. Then the price of lettuce rises. What will happen?
A. The quantity demanded of salad dressing will increase. B. The supply of salad dressing will decrease. C. The demand for salad dressing will decrease. D. The price of salad dressing will rise.
Refer to the given tables. The domestic opportunity cost of one unit of X in Alpha is:
Answer the question on the basis of the following production possibilities tables for countries Alpha and Beta:
A. 2 units of Y.
B. 4 units of Y.
C. 1 unit of Y.
D. 3 units of Y.