In the above figure, the total producer surplus at the efficient level of output is ________
A) $4.5 million
B) $9.0 million
C) $2.5 million
D) $3.0 million
D
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In late 2007, the Fed began a series of cuts in the federal funds rate. Because the core inflation rate was about two percent, the most likely reason for these interest rate cuts was
A) to increase the real interest rate. B) to avoid a recession. C) to encourage households to save more money. D) to reduce the natural unemployment rate. E) to raise the price of the dollar in the foreign exchange market.
If an increase in the incomes of people who live in the Los Angeles area leads to an increase in the demand for season tickets for games played by the Los Angeles Lakers professional basketball team, then these season tickets are
A) a normal good. B) an inferior good. C) an income complement. D) an income substitute.
In the circular-flow diagram, factors of production are the goods and services produced by firms
a. True b. False Indicate whether the statement is true or false
In this consumer surplus graph, why is the market demand curve smooth?
a. Demand is artificially set by government price controls.
b. One buyer sets the demand for the entire market.
c. The buyers all share identical levels of willingness to pay.
d. There are many buyers with unique levels of willingness to pay.