According to the graph shown, the area ABC represents consumer surplus in an economy with:
This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
A. free trade.
B. autarky.
C. a tariff being imposed on trade.
D. None of these is true.
B. autarky.
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If seller increases the price of the good and the total revenue increases, this implies that the demand for the product is elastic.
Answer the following statement true (T) or false (F)
Speculators absorb additional risk in futures markets as a result of the actions taken by
A) longs. B) hedgers. C) brokers. D) shorts.
Automatic stabilizers in the United States are: a. changes in government transfer payments and tax revenues that vary automatically and inversely to business cycle changes. b. controlled by the Federal Reserve System to help control the business cycle
c. able to completely eliminate all the lag problems associated with fiscal policy. d. none of the above.
When resources are readily available, such as during the Great Depression, they can be used to produce more goods (and create more income) without causing prices to increase
Indicate whether the statement is true or false