In the figure above, when production is 3 units with a price of $3, the consumer surplus equals
A) a + b.
B) a + b + f + g.
C) a + b + f + g + h + l.
D) a + b + f + g + h + l + i + m.
A
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Which of the following statements is (are) correct? Regardless of whether the LM curve is vertical or upward sloping,
a. a money stock target is superior to an interest rate target when the uncertainty facing the policymaker concerns the IS schedule. b. an interest rate target is always superior to a money stock target when the uncertainty facing the policymaker concerns the IS schedule. c. both a money stock target or interest rate target provide the same results when the uncertainty facing the policymaker concerns the IS schedule. d. a money stock target is never superior to an interest rate target when the uncertainty facing the policymaker concerns the IS schedule.
The Great Recession of 2007–2009 and the financial crisis of 2008 increased the budget deficit because of: a. an increase in the tax rates for high-income households
b. a sudden increase in terrorist attacks and anthrax scares in the economy. c. low interest rates that crowded out private investment. d. discretionary tax cuts and greater outlays on unemployment benefits. e. greater outlays on national defense spending.
According to the adaptive expectations theory, people form their expectations of the future on the basis of future expectations
a. True b. False Indicate whether the statement is true or false
The peak of the total revenue curve is achieved at the point where:
a. marginal revenue is the highest. b. price is the highest. c. marginal revenue is zero. d. marginal cost is zero.