In the above figure, if the natural monopoly is not regulated then consumer surplus is
A) $48 million.
B) $60 million.
C) $108 million.
D) $192 million.
A
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Mutually beneficial trade is possible when the terms of trade are
A. between the seller's and buyer's opportunity cost. B. above the seller's opportunity cost and above the buyer's opportunity cost. C. between the seller's and buyer's general behavior. D. below the seller's opportunity cost and above the buyer's opportunity cost.
If the recessionary GDP gap is $500, then the proper fiscal stimulus when faced with an upward-sloping AS curve is to
A. Shift the AS curve rightward by less than $500. B. Shift the AD curve rightward by $500. C. Shift the AD curve leftward by $500. D. Shift the AD curve rightward by more than $500.
A decrease in the price of bubble gum below equilibrium will
A. Cause a surplus of bubble gum. B. Shift the bubble gum demand curve to the right. C. Shift the bubble gum supply curve to the right. D. Cause a shortage of bubble gum.
If the marginal tax on labor income rises then the tax receipts of the government:
a. rise. b. stay the say. c. fall. d. may rise, fall or stay the same.