In Figure 23.1, for a good with no externality, which area represents the total value to the consumer? 
A. 0BCQ*
B. BP*C
C. 0ACQ*
D. 0P*CQ*
Answer: C
You might also like to view...
As the capital-labor ratio increases, investment per worker
A) increases at an increasing rate. B) decreases at a constant rate. C) increases at a decreasing rate. D) decreases at an increasing rate.
If the Federal Reserve increases the money supply, ceteris paribus, the:
a. rate of interest decreases. b. rate of interest increases. c. rate of interest is unaffected. d. Fed sells bonds.
Acyclical variables:
a. Move in the same direction as the business cycle b. Only move in the same direction as the business cycle during recessions c. Only move in the same direction as the business cycle during expansions d. Move in the opposite direction as the business cycle e. None of the above.
Using Figure 2 above, suppose that the economy started at PAE2. A potential change that could cause the economy to go from PAE2 to PAE3 might be:
A. domestic income increases. B. interest rates decrease. C. wealth level decreases. D. expected profitability of investments decrease.