The above figure shows the U.S. market for chocolate. With international trade, consumer surplus is equal to
A) area A + area B + area C + area D.
B) area A.
C) area B + area C + area D.
D) area C + area D.
E) area E.
A
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Samantha goes to college to become an engineer. This is an example of an
A) investment in physical capital. B) investment in human capital. C) increase in entrepreneurship D) increase in labor.
If the interest rate is 10%, then $1 today is worth how much one year from now?
A) $1.10 B) $1.00 C) $0.91 D) $0.90
To be binding, a price floor must be set above the equilibrium price
a. True b. False Indicate whether the statement is true or false
The economy is at equilibrium at point C which is below potential output. What fiscal policy would increase real GDP?
Refer to the figure above.
A. Shift aggregate demand by increasing taxes
B. Shift aggregate demand by decreasing transfer payments
C. Shift aggregate demand by decreasing government spending
D. Shift aggregate demand by increasing transfer payments