If an average cost pricing rule is imposed on the natural monopoly shown in the figure above, then consumer surplus will be
A) $0.
B) $8 million.
C) $9 million.
D) $16 million.
C
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If the consumption of a good or service by one person does not decrease the quantity available for another person, the good or service is
A) nonrival. B) nonexcludable. C) pure. D) free.
In an open economy, private saving, , is equal to
A) I - CA + (G - T). B) I + CA - (G - T). C) I + CA + (G - T). D) I - CA - (G - T). E) I + CA + (G + T).
Increases in interest rates
A) reduce borrowers' net worth. B) reduce lenders' net worth. C) increase the present value of borrowers' assets. D) raise the cost to businesses of internal funding.
If the U.S. dollar appreciates in value relative to foreign currencies, then this will:
A. increase aggregate demand and aggregate supply. B. increase aggregate demand and decrease aggregate supply. C. decrease aggregate demand and aggregate supply. D. decrease aggregate demand and increase aggregate supply.