The above figure shows the U.S. market for wheat. With international trade, the gain in total surplus is equal to ________
A) area A
B) area B + area C
C) area D
D) area C + area F
E) area C + area D + area F
C
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Assume that both the goods and the labor market are perfectly competitive. If at equilibrium, the wage rate is $20 per hour and the marginal product of labor is 4 units, the firm's marginal cost must be equal to:
A) $5. B) $24. C) $40. D) $80.
The sticky-price theory helps explain what feature of the aggregate demand and aggregate supply model?
Linus has just watched two hours of TV. We can say:
A. his second hour of watching TV likely reduced his total utility. B. his second hour of watching TV likely added less to his total utility than did the first. C. if he watches a third hour it will likely increase his total utility by at least as much as the second. D. if he watches a third hour it will likely decrease his total utility.
One thousand adults live in Milltown. Every day, they all leave work at 4:30 p.m., arrive home at exactly 5:00 p.m., and go to bed at 9:00 p.m. Three fundraisers, Alpha, Beta, and Charlie, have targeted Milltown's population. To get a donation, they must call Milltown's residents after they get home from work but before they go to bed. Because the charities raising the funds are identical, the first to call a willing donor will get the donation. Calls made by the fundraisers will tend to be:
A. clustered near 7:00 p.m. B. clustered near 6:00 p.m. C. clustered near 5:00 p.m. D. evenly distributed throughout the evening.