In a diagram, consumer surplus is always represented by the area:
A. above the demand curve.
B. between the demand curve and the supply curve.
C. between the demand curve and the price.
D. below the demand curve.
Answer: C
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Describe the field of economics known as microeconomics
What will be an ideal response?
If the Federal Reserve buys $1,000 in bonds and the reserve requirement ratio is 0.5, what happens to the money supply and the net worth of all banks?
a. The money supply decreases by $2,000 and net worth increases by $1,000. b. The money supply increases by $500 and net worth increases by $500. c. The money supply increases by $2,000 and net worth does not change. d. The money supply increases by $500 and net worth does not change. e. The money supply increases by $2,000 and net worth increases by $2,000.
Which of the following is correct?
A. SMC = PMC - MD B. MPB = MSB + MEB C. SMC = PMC + MD D. MSC = MPB E. MSB = MSC + MPB
Assume that a grower of flower bulbs sells its annual output of bulbs to an Internet retailer for $80,000. The retailer, in turn, brings in $155,000 from selling the bulbs directly to final customers. What amount would these two transactions add to personal consumption expenditures and thus to GDP during the year?
What will be an ideal response?