Refer to Figure 4-3. What area represents consumer surplus at the equilibrium price of P1?

A) A + B + C + D + E B) A + B + C C) D + E D) A


B

Economics

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Inmates from the county prison who are on work release are counted as part of the labor force

a. True b. False Indicate whether the statement is true or false

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Inventory investment can be defined as

A. the value of monetary transactions by businesses. B. goods that must be excluded from the GDP to avoid double counting. C. the system of accounts that is used to count certain goods. D. changes in the stocks of finished goods and raw materials.

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Refer to the scenario above. What is Sarah's opportunity cost of producing one greeting card?

A) 0.33 earrings B) 0.5 earrings C) 1 earring D) 3 earrings

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In the health insurance market, moral hazard occurs when

A) chronically ill people buy insurance. B) insured people go to the doctor unnecessarily. C) patients sue their doctor. D) chronically ill people refuse appropriate medical treatment.

Economics