Use the following figure showing the domestic demand and supply curves for product B in a hypothetical economy to answer the next question.
Prior-to-trade (autarky) consumer surplus equals area(s)
A. A + B.
B. A + B + C.
C. E + F.
D. A.
Answer: D
You might also like to view...
If the deficit is 0.08 times GDP, the existing debt—GDP ratio is 0.8, and the growth rate of nominal GDP is 0.05, then the change in the debt—GDP ratio is
A) +0.08 B) +0.04. C) 0. D) -0.08.
In the equation S = Y - C, in order to interpret Y as disposable income, it is necessary to interpret S as ________ saving
A) private B) national C) government D) business
Markets are primarily responsible for the rapid rise in productivity during the twentieth century
a. True b. False Indicate whether the statement is true or false
The change in consumption divided by the change in disposable income is called the
A. marginal propensity to consume. B. probability of spending. C. the marginal product. D. marginal aggregate spending.