Suppose the market supply for good X is given by QXS = -100 + 5PX. If the equilibrium price of X is $100 per unit then producer surplus is
A. $1,600.
B. $16,000.
C. $400.
D. none of the statements associated with this question are correct.
Answer: B
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During 2013, a country reported that its real GDP increased by $3.0 billion. If the slope of its aggregate planned expenditure curve is 0.9, then which of the following might have led to the increase in real GDP?
A) Investment decreased by $0.3 billion. B) Imports increased by $0.3 billion. C) Government expenditure on goods and services increased by $3 billion. D) Exports increased by $0.3 billion. E) Exports decreased by $0.3 billion.
The deregulation of U.S. banking in the 1980s led to: a. increased profits at all banks
b. no change in banks' conduct. c. more bank failures than in the 1930s. d. the insolvency and collapse of many banks as they began to hold riskier assets. e. the end of FDIC insurance for banks that held risky assets.
According to the quantity theory of money, if an economy produces 100 units of output and has a money supply equal to $500, then if the money supply doubles while velocity remains constant, the new price level will:
a. fall to half its initial level. b. fall, but it will not fall all the way to half its initial level. c. increase, but it will not double. d. double. e. more than double.
In the dollar:pound foreign exchange market, is it always true that when the demand for dollars rises the supply of pounds falls?
a. Yes. This is always true. b. No. This is not always true. c. Like most things in life, it depends on a variety of other factors.