Assuming the market is in equilibrium in the graph shown with demand D and supply S2 at a quantity of 8, consumer surplus is:
A. $32.
B. $11.
C. $7.
D. equal to the producer surplus.
D. equal to the producer surplus.
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The opportunity cost of holding money is that you
A) forego interest on an alternative asset. B) must make more trips to the bank to manage the money. C) have trouble balancing your check book. D) pay a higher tax rate. E) run a greater risk of being robbed.
If a worker is temporarily laid off because the economy is in a recession
A) frictional unemployment increases. B) structural unemployment increases. C) the size of the labor force rises. D) cyclical unemployment increases.
The data in the table above are the U.S. balance of payments. The current account balance is
A) $140 billion. B) $155 billion. C) $170 billion. D) -$45 billion.
An economist would say the price is too high for a certain service if
a. poor people couldn't afford to buy it. b. nobody could afford to buy it. c. the price was above marginal cost. d. it is an essential service and consumes a significant share of income.