In the above figure, if the market produces the efficient amount of purses then producer surplus equals triangle
A) abc.
B) bcd.
C) adc.
D) dce.
B
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If the price level rises by 3 percent and workers' money wages increase by 3 percent, then the
A) quantity of labor demand will decrease. B) quantity of labor demand will increase. C) quantity of labor demanded does not change because there is no change in the real wage rate. D) Any of the above could occur depending on the magnitude on the dollar increase in the price level versus the dollar increase in the wage rate.
It is difficult to balance the budget every year because:
A. political battles often cause blatant deficit spending that could be avoided. B. while economic downturns are easy to predict, booms are not. C. it is hard to get agreement on how to spend discretionary funds. D. it is unlikely that revenues will exactly equal planned expenditures in any given year.
A credit item on the U.S. balance of payments is an item that
a. makes U.S. dollars available to foreigners. b. causes foreigners to use up their U.S. dollars. c. is like an import. d. requires the use of official researchers to offset deficits.
If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output. B. lower price level and lower level of output. C. higher price level and higher level of output. D. lower price level and higher level of output.