Refer to Figure 7-1. Under autarky, the producer surplus is area
A) S + T + V + W + X. B) T + W + X. C) V. D) S + V.
D
You might also like to view...
In the above figure, at a price of $4 per unit, a profit-maximizing perfectly competitive firm will
A) shut down because its total revenue is less than its variable costs. B) incur an economic loss. C) produce 5 units. D) Both answers A and B are correct.
If the spot exchange rate between dollars and pounds is equal to 2 dollars for one pound and the forward exchange rate equals 2.10 dollars for one pound, then
A) the dollar is trading at a forward premium. B) the pound is trading at a forward discount. C) the pound is trading at a forward premium. D) the market presents an opportunity for arbitrage.
The primary assets of money market mutual funds are
A) stocks. B) bonds. C) money market instruments. D) deposits.
Alison consumes only tea and cookies and consumes them only in equal proportions. What is Alison's income elasticity of demand for tea?
What will be an ideal response?