Refer to Figure 9.2. At price 0E and quantity Q*, consumer surplus is the area
A) 0FCQ*.
B) AFC.
C) EFC.
D) AEC.
E) none of the above
C
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By measuring ________ we can see that the economies of Hong Kong and Singapore are catching up to the economies of North America but that the economies of Central and South America are not
A) inflation per person B) real GDP per person C) the population D) real GDP
Assume that the Fed has a target inflation rate of 2% and that the values for how much the nominal target federal funds rate responds to a deviation of inflation from its target, g, and how much the nominal target federal funds rate responds to real
GDP, h, are both 0.5. According to the Taylor rule, if inflation increases by 6%, the real interest rate will increase by A) 3%. B) 4%. C) 6%. D) 9%.
A monopolist changes price from $1 to $2 and sells 10 fewer units. The marginal revenue is
A) $10 B) -$10 C) $0 D) impossible to determine with the information provided.
An increase in net taxes (taxes paid by the private sector to the government less transfer payments and interest payments made by the government to the private sector) will:
A. decrease public saving. B. increase private saving. C. increase public saving. D. reduce investment in new capital equipment.