Under autarky, domestic producer surplus is represented by the area
A) above the supply curve and below the equilibrium price.
B) above the demand curve and below the supply curve.
C) above the supply curve and below the demand curve.
D) below the demand curve and above the equilibrium price.
A
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Imagine two countries, Zorba and Anduluvia. Zorba is producing everything at a lower resource cost than Anduluvia. If the two countries trade what is the reason?
What will be an ideal response?
Someone who is available for work but has not actively looked for work in the previous four weeks would be classified as
A) employed. B) not in the labor force. C) not in the working-age population. D) unemployed.
Which of the following is true?
a. Decision making should never be centralized b. When decentralizing decision making, figure out a way to transfer information to the decision maker c. When decentralizing decision making, strengthen incentive compensation schemes d. When decentralizing decision making, weaken incentive compensation schemes
Consumers buy less of a good as its price increases because:
a. production costs have risen. b. substitute goods are now relatively cheaper. c. the income of consumers has effectively risen. d. the higher price will make the good more valuable to each consumer.