Suppose the accompanying figure shows the demand curve, marginal revenue curve and marginal cost curve for a monopolist.
When this monopolist maximizes its profit, consumer surplus equals the area:
A. ABJ.
B. ACKJ.
C. AELJ.
D. ACN.
Answer: A
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If a household has an income of $40 and buys only bus rides at $2 each and magazines at $4 each, what is the equation of the household's budget line?
What will be an ideal response?
The aggregate demand curve shows the relationship between the ________ and ________
A) price level; quantity of real GDP demanded B) real interest rate: quantity of real GDP supplied C) nominal interest rate; quantity of real GDP demanded D) inflation rate; quantity of real GDP demanded
The current deficit is
A) the deficit minus government investment. B) the deficit plus net interest payments. C) the deficit minus current expenditures. D) the deficit minus depreciation.
Consider a small open economy with desired national saving of Sd = 1000 + 1000rw and desired investment of Id = 1000 - 500rw. Calculate national saving, investment, and the current account balance in equilibrium when the real world interest rate is
(a) rw = 0.025. (b) rw = 0.05. (c) rw = 0.0.