The above figure shows the U.S. market for chocolate. With international trade, the gain in total surplus is equal to

A) area B.
B) area A + area B + area C + area D.
C) area B + area C + area D + area E.
D) area C + area D.
E) area B + area C + area D.


D

Economics

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Consider an economic policy regime in which rules are well-known but frequently ignored. Which of these statements is true?

A) This regime might work in the long-run, but is unlikely to produce good outcomes in the short run. B) Policymakers in this regime might find that rules are being broken with increasing frequency. C) This regime is more likely to be supported by nonactivist, than by activist policymakers. D) This regime is more likely to result in high unemployment than in high inflation. E) This regime is unlikely to produce large government budget deficits.

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Among the pioneers of real business cycle theory is ________

A) Edward Prescott B) Robert Lucas C) Robert Solow D) Paul Volcker

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If you lend money at a nominal interest rate of 9 percent and the inflation rate is 1 percent, what real interest rate will you earn?

a. 3 percent b. 4 percent c. 8 percent d. 12 percent e. 15 percent

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Few nations belong to both the World Trade Organization and regional trading agreements.

Select whether the statement is true or false. A. True B. False

Economics