According to the graph shown, producer surplus is:
A. the area under the demand curve and above the market price.
B. the area above the supply curve and below the price.
C. the area above the demand curve and below the price.
D. the area under the supply curve and above the price.
Answer: B
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In the Solow model, the faster growth of output that results from an increase in the saving rate is temporary, because ________
A) of diminishing marginal product of capital B) with a larger stock of capital, consumption is encouraged more than investment C) the rising capital stock depreciates at a faster rate D) the economy settles into a steady state in which saving no longer rises
An unexpected event that causes the aggregate demand curve to shift inward or outward is an
A) aggregate demand shock. B) aggregate supply shock. C) aggregate supply increase. D) aggregate supply decrease.
Auctions are valuable for selling items such as
a. Art b. Antiques c. Custom jewelry d. All of the above
Suppose that the adult population in the country of Atlantis is 115 million. If 80 million people are employed and 5 million are unemployed, then
a. 30 million are not in the labor force. b. 35 million are in the labor force. c. 75 million are in the labor force. d. 35 million are not in the labor force.