The above figure shows the domestic market for tomatoes. Suppose this market is isolated from global competition and there is a support price set at $16. In this figure, what area equals the producer surplus?
A) area A + area B + area C
B) area A + area F
C) area B + area C + area D + area F
D) area C + area D + area E + area G
E) area F
C
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Based on the figure above, as a result of international trade, U.S. domestic production ________ airplanes per year
A) decreases by 200 B) increases by 300 C) decreases by 100 D) increases by 500 E) increases by 200
The nominal rate of interest is any rate of interest below 3 percent
a. True b. False Indicate whether the statement is true or false
A firm's ______ cost is equal to the sum of the ______ costs of the individual units it produces.
A. total; average B. variable; average C. total; marginal D. variable; marginal
Refer to the accompanying figure.
Based on the figure, if the economy is in short-run equilibrium with output equal to 24,000, then there is ________, and ________ could return the economy to potential output (Y*).
A. an expansionary gap; a decrease in autonomous expenditures of 4,000 B. a recessionary gap; an increase in autonomous expenditures of 1,000 C. a recessionary gap; an increase in autonomous expenditures of 4,000 D. an expansionary gap; a decrease in autonomous expenditures of 1,000