According to the graph shown, if the market is in equilibrium, producer surplus is area:
A. A.
B. A + B + C.
C. A + B + C + D + E.
D. D + E.
D. D + E.
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Three airlines account for most of the air traffic in and out of a local city. If the three airlines joined together in setting fares and air travel schedules, economists would say that they were acting as: a. monopolistic competitors, as each firm would have to differentiate its airline services from its rivals
b. perfect competitors, as each firm would sell travel services at the same fares as the other airlines. c. a cartel, as the three airlines together would attempt to coordinate policies in the local market to jointly maximize profits. d. none of the above
In the? circular-flow diagram showing how a market system? works,
A. income flows to firms and the government through factor markets. B. households are demanders and firms are suppliers in factor markets. C. firms and households are both suppliers in product markets. D. income flows to firms through product markets. E. households purchase output produced by firms in product and factor markets.
Inflation initiated by increases in wages or other resource prices is labelled:
What will be an ideal response?
Which of the following trends had been happening in the banking industry even before the Financial Crisis of 2007-2008?
A. An expansion in the number of banks and thrifts B. A consolidation of services offered by financial institutions C. A decrease in the integration of global financial markets D. An increase in the amount of savings held by banks relative to other financial institutions