In the market depicted in the above figure, if a single-price monopoly maximizes its profit, which area shows the consumer surplus?
A) area GHIL
B) area HIJ
C) area HJKG
D) area NFL
B
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If the price of gasoline increases and the price of food remains the same, then real income measured in terms of
A) gasoline increases. B) gasoline decreases. C) food increases. D) food decreases.
In a ________ banking system, commercial banks engage in securities underwriting, but legal subsidiaries conduct the different activities. Also, banking and insurance are not typically undertaken together in this system
A) universal B) British-style universal C) short-fence D) compartmentalized
In an open economy, aggregate demand is the sum of
A) consumer expenditure, actual investment spending, and government spending. B) consumer expenditure, planned investment spending, and government spending. C) consumer expenditure, actual investment spending, government spending, and net exports. D) consumer expenditure, planned investment spending, government spending, and net exports.
Which of the following would not increase autonomous consumption spending?
a. Expectations of greater future income b. A lower interest rate c. Reduced consumer debt d. Increased household wealth e. Increased disposable income