In Figure 3.2, what is the consumer surplus? 
A. BP*C
B. 0PCQ*
C. 0ACQ*
D. P*AC
Answer: D
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Expansionary fiscal policy falls short of its goal. Some economists claim it is due to indirect crowding out. What evidence would be consistent with this claim?
A) The interest rate increased. B) The price level decreased. C) Saving decreased. D) An increase in consumer spending occurred.
Suppose a drought increased the price of corn by 25 percent while it decreased the quantity by 50 percent. The price elasticity of demand equals
A) 2.00. B) 0.50. C) 20.0. D) zero.
Credit card balances are
A) part of M1. B) part of M2. C) part of M3. D) not part of the money supply.
The real GDP refers to the value of final output produced in a given period, adjusted for
A. Fixed prices. B. Final prices. C. Changing prices. D. No prices.