The graph below represents the market for alfalfa. The market price is $7.00 per bushel. Identify the areas representing consumer surplus, producer surplus, and economic surplus
What will be an ideal response?
Consumer surplus is represented by area A.
Producer surplus is represented by area B.
Economic surplus is represented by area A + B.
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With total fixed cost of $400, a firm incurs an average total cost of $3 and average variable cost of $2.50. The amount of output produced by the firm must be
A. 800 units. B. 1,600 units. C. 400 units. D. 200 units.
If the implied exchange rate between Big Mac prices in the United States and the Philippines is 68 pesos per dollar, but the actual exchange rate between the United States and the Philippines is 43 pesos per dollar, which of the following would you
expect to see? A) a depreciation of the dollar B) an increase in the demand for dollars C) an appreciation of the Philippine pesos D) a decrease in the demand for dollars
Which of the following would cause the nominal exchange rate to appreciate?
A) The real exchange rate depreciates. B) The domestic inflation rate decreases. C) The domestic inflation rate increases. D) The government budget deficit decreases.
In recent decades, other countries have:
a. caught up to the U.S. in several important economic arenas b. surpassed the U.S. in several important economic arenas c. both of the above are true