Consumer surplus:
a. does not exist in equilibrium.
b. is illustrated by the area under the demand curve and above the market price.
c. is illustrated by the area under the demand curve and below the market price.
d. is illustrated by the area above the supply curve and under the demand curve.
b
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Refer to Figure f. A benefit function, W(F), is plotted in Figure f. The letter A represents:
A. the risk premium of the consumption bundle.
B. the expected utility of the consumption bundle.
C. the certainty equivalent of the consumption bundle.
D. the expected consumption.
Can changes in the growth rate of the velocity of money create a recession?
A. Yes, if the change is negative and large enough. B. No, because changes in the growth rate of velocity are temporary. C. No, because changes in the growth rate of velocity only affect inflation, not real growth. D. Yes, if the change is an unexpected increase in the growth rate of the velocity of money.
Michael starts his own business after quitting his job in which he made $75,000. Expenses include $100,000 for wages and salaries, which includes a wage for the owner of $75,000, utilities of $5000, equipment of $50,000, and materials of $40,000. If revenues are $200,000, Michael's accounting and economic profits are respectively
A. -$70,000 and $5,000. B. $80,000 and $5,000. C. -$70,000 and -$70,000. D. $5,000 and $5,000.
What is the domestic exchange equation of Italy?
