Assume the market was in equilibrium in the graph shown. If the market price were set to $12, which of the following is true?
A. For those still interacting in the market, some surplus is transferred from buyer to seller.
B. For those still interacting in the market, some surplus is transferred from seller to buyer.
C. Producers gain the surplus of those buyers who dropped out of the market.
D. Consumers gain the surplus of those sellers who dropped out of the market.
A. For those still interacting in the market, some surplus is transferred from buyer to seller.
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If a country's real GDP is rising by 3% per year while its population is rising at 5% per year, which of the following is true?
A) Growth in nominal GDP is less than the growth in the population. B) The country's standard of living is falling. C) The country's standard of living is rising. D) Growth in nominal GDP outweighs growth in the population.
The above figure shows the market for apples. If apple farmers convince the government to set a minimum price of $4 per pound, then
A) 100 pounds of apples will be sold at $4. B) no apples will be supplied. C) no apples will be demanded. D) None of the above.
Suppose that a nation has adopted a fixed exchange rate with another country, and has a persistent trade deficit. What is most likely to happen?
a. a gradual increase in the value of its currency b. a gradual decrease in the value of its currency c. a "run" on its currency and a sudden appreciation d. a "run" on its currency and a sudden devaluation
How much is savings when disposable income is $5 billion?
