Refer to the information provided in Figure 4.6 below to answer the question(s) that follow.Equilibrium in this market occurs at the intersection of curves S and D.
Figure 4.6Refer to Figure 4.6. If price is P1, consumer surplus is area
A. G.
B. A + B + E.
C. A.
D. B + C + E + F + G.
Answer: B
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In Great Britain, raising taxes on gasoline has increased the costs of supplying gasoline. As a result, the equilibrium quantity of gasoline ________ and the equilibrium price of gasoline ________
A) increases; falls B) decreases; falls C) does not change; rises D) decreases; rises E) increases; rises
Table 35.1CountryTons of SoybeansComputerChina100300United States150750Based on the information in Table 35.1, assume China and the United States have the same amount of resources with which to produce soybeans and computers and they produce no other goods. The output of computers and soybeans would be greatest if
A. China specialized in producing computers, while the United States specialized in producing soybeans. B. Both countries prohibited trade. C. The United States produced both goods and exported them to China. D. China specialized in producing soybeans, and the United States specialized in producing computers.
Monopolies that price discriminate do so because
A) they are able to do so and no one else can. B) they can increase their profits. C) it keeps them out of trouble with the government. D) it is more efficient.
To eliminate a recessionary gap the Fed typically uses __________ monetary policy, and to eliminate an inflationary gap the Fed typically uses __________ monetary policy
A) expansionary; expansionary B) expansionary; contractionary C) contractionary; contractionary D) contractionary; expansionary