Refer to the above figure. Suppose demand is D2 and then increases to D3. The change in economic rent is
A. area CIHF.
B. area BJC.
C. zero.
D. area CIGO.
Answer: A
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Using the information in Table 6.2, the Astro Consumer Price Index for 2015 is
A) 87. B) 99. C) 126. D) 238.
A positive externality ________
A) gives rise to external benefits B) leads to increasing returns to scale C) imposes an additional cost on the society D) leads to higher economic profit
Which of the following is true of a "vanilla" bond?
a. It realizes capital gains in multiples of $1,000. b. It provides a fluctuating stream of interest income every year. c. It assures a return higher than the market rate of interest. d. It has a par value payable after a certain number of years from its issuance.
Answer the following questions true (T) or false (F)
1. If the demand for a product decreases and the supply of the product does not change, equilibrium price and equilibrium quantity will both increase. 2. If the demand curve for a product shifts to the right and the supply curve for the product shifts to the left, equilibrium price and equilibrium quantity will both increase. 3. A monopoly is defined as a firm that has the largest market share in an industry.