Refer to the graph shown.
Assuming each carnival game costs $1 and each Ferris wheel ride costs $2, a consumer with $16 to spend will optimally choose to consume at point:
A. A.
B. B.
C. C.
D. D.
Answer: B
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Use the figure below to answer the following question.
The area that identifies the maximum sum of consumer surplus and producer surplus is
A. a + b + e. B. a + b + c + d. C. a + b + c + d + e + f. D. c + d + f.
If the Fed is facing ________, the bank lending channel provides one explanation for why monetary policy may still be effective even when short-term nominal interest rates equal 0%
A) an upward-shifting Phillips curve B) stagflation C) the zero bound constraint D) an economy where real GDP has surpassed potential GDP
Sticky wages and prices may cause quick shifts in aggregate demand and the macroeconomy.
Select whether the statement is true or false. A. True B. False
When firms already in the industry produce under conditions of substantial economies of scale, the market is said to be contestable
Indicate whether the statement is true or false