Refer to the diagram. Assuming equilibrium price P 1 , producer surplus is represented by areas:
A. a + b.
B. a + b + c + d.
C. c + d.
D. a + c.
C. c + d.
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If total profit is maximized, then marginal cost must equal marginal revenue.
Answer the following statement true (T) or false (F)
The market for loanable funds is a market in which:
A. savers supply funds to those who want to borrow for their investment spending needs. B. borrowers buy and sell loans. C. savers interact to set the interest rate for loans. D. borrowers supply funds to savers, who want loans for their investment spending needs.
A citizen in a developing country with a currency policy of convertibility on the current account could engage in all of the following transactions except:
A. sell foreign currency resulting from the exports of manufactured t-shirts. B. sell foreign currency resulting from the sale of a U.S. treasury bond. C. purchase foreign currency in order to import a BMW. D. purchase foreign currency in order to purchase a U.S. treasury bond.
Foreign direct investment is mainly refers to foreign securities investments that do not involve management control.
Answer the following statement true (T) or false (F)