Refer to Figure 6.6, which shows a market for taxi medallions. If the number of taxi licenses is reduced from Q2 to Q1, the decrease in total surplus of the market is represented by:
A. area FGI.
B. area GHI.
C. area FHI.
D. area BDFH - area FHI.
Answer: C
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The above table gives data for the nation of South Hampton. There are no imports into or exports from South Hampton. The equilibrium level of real GDP is
A) $700 billion. B) $400 billion. C) $500 billion. D) $600 billion. E) $800 billion.
An example of a perfectly competitive firm is
A) an oat farmer in the United States. B) the local cable TV company. C) a U.S. automobile producer. D) a big city newspaper.
A monopolistically competitive market is described as one in which there are
A) a large number of firms selling similar, but not identical, products. B) one large firm and many small firms producing identical products. C) a few firms producing an identical product. D) a few firms producing differentiated products.
The tradeoff between the inflation rate and unemployment rate is represented by the:
a. consumption function. b. misery index. c. Phillips curve. d. Keynes curve.