Refer to Figure 7-1. Suppose the government allows imports of leather footwear into the United States. The market price falls to $24. What area represents consumer surplus?
A) R + S B) V + W + X + Y C) R + S + V D) R + S + T + U
D
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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
The total costs of regulation
A) include increased taxes and increased prices of the products being regulated. B) are paid entirely by the regulated industries. C) are much higher than just the explicit government outlays to fund the administration of various regulations. D) are paid entirely by the consumers of regulated industries.
Refer to the information. The $40 billion deposit of currency into checking accounts will create excess reserves of:
Answer the question on the basis of the following information about a banking system: new currency deposited in the system = $40 billion; legal reserve ratio = 0.20; excess reserves prior to the currency deposit = $0. A. $20 billion. B. $32 billion. C. $40 billion. D. $0.
The supply curve for a monopoly is:
A. The portion of the marginal cost curve that lies above the average variable cost curve B. The portion of the marginal cost curve that lies above the average total cost curve C. The portion of the marginal cost curve that lies above the average fixed cost curve D. Not clearly defined