Total surplus:
A. is the total amount spent on a good in a market.
B. is producer surplus minus consumer surplus.
C. is producer and consumer surplus combined.
D. is consumer surplus minus producer surplus.
Answer: C
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If two countries are very different in relative factor abundance, then empirical support for which of the following would less likely?
A) the Factor Price Equalization Theorem B) the Heckscher-Ohlin Theorem C) the Law of One Price D) the Law of Demand E) the Gravity Theorem
Assume a bank has total deposits of $100,000 and $20,000 is set aside to meet reserve requirements of the Fed. Its required reserve ratio is:
A. $20,000. B. 20 percent. C. 0.2 percent. D. 1 percent.
If the aggregate supply curve is flat,
A. contractionary fiscal or monetary policy will reduce inflation with little effect on real GDP. B. contractionary fiscal or monetary policy will cause significantly less inflation. C. expansionary fiscal or monetary policy will add significantly to real GDP will little effect on inflation. D. expansionary fiscal or monetary policy will add little to real GDP but will increase inflation significantly.
In ________ the United States Congress created the Federal Trade Commission.
A. 1787 B. 1890 C. 1914 D. 1950