Refer to the information provided in Figure 4.6 below to answer the question(s) that follow.Equilibrium in this market occurs at the intersection of curves S and D.
Figure 4.6Refer to Figure 4.6. Consumer surplus changes by the area [E - C] if price goes from equilibrium to
A. P1.
B. P3.
C. < P1.
D. > P3.
Answer: A
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Which of the following are balance of payments accounts?
i. capital and financial account ii. tariff account iii. current account A) i only B) ii only C) iii only D) i and iii E) ii and iii
Monetary policy has no effect on equilibrium income when the
A) LM curve is positively sloped. B) IS curve is negatively sloped. C) IS curve is vertical. D) IS curve is horizontal.
The right to openly support and to elect leaders in a democratic way is known as
A) political freedom. B) economic freedom. C) constitutional freedom. D) external freedom.
When one firm lowers its price, its gain in sales at the expense of other firms is known as
a. administered sales. b. the substitution effect. c. the collusive effect. d. product differentiation.