Use the figure below to answer the following question.
At equilibrium, consumer surplus would be represented by the area
A. a + b + c.
B. b.
C. a.
D. a + b.
Answer: C
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The number of persons who could become lawyers or surgeons is potentially quite large, yet these two groups earn fairly high incomes. One of the main reasons why they do is the
A. return on the investment of many years of training. B. evening-out of their low income during schooling. C. rent on their unique and rare talents. D. scarcity value of their abilities.
Which one of the following statement best describes a price floor?
a. A price floor causes demand to change. b. A price floor causes supply to change. c. A price floor keeps a price from rising above a certain level. d. A price floor keeps a price from falling below a certain level.
According to the Taylor rule,
a. the Fed would have the discretion to choose an appropriate inflation rate b. the Fed would announce targets for the inflation rate and real GDP c. the Fed would allow the inflation rate to increase by about 0.5 percent per year d. the Fed would allow the price level to increase by about 0.5 percent per year e. Congress would set an annual inflation rate target
When a muscle attaches to a bone, the end that does not move is the:
A. insertion. B. origin. C. root. D. tendon.