According to the graph shown, if the market is in equilibrium, total surplus is area(s):
A. D + E.
B. A + B + C + D + E.
C. A + B + C.
D. A.
Answer: B
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If unemployment is at the natural rate, then there
A) is no cyclical unemployment. B) is no frictional unemployment. C) will be cyclical and frictional unemployment but not structural unemployment. D) will be only cyclical unemployment.
If a country's population grows at the same rate as its real GDP, then real per capita GDP:
a. doesn't change. b. grows at an increasing rate. c. decreases at a decreasing rate. d. grows at a constant rate.
When the supply of a good is perfectly elastic, the entire tax is paid by the buyers
a. True b. False Indicate whether the statement is true or false
If the economy is in a short-run equilibrium above potential output, then
A. the unemployment rate is below the natural rate B. there will be upward pressure on wages C. as wages eventually change the short-run aggregate supply curve will shift up/left D. all of the above