In the figure above, if the firm is regulated using an average cost pricing rule, the consumer surplus created is equal to the area of
A) ABG.
B) BEFG.
C) BCFG.
D) BCE.
E) None of the above because there is no consumer surplus created.
A
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A country would tend to experience currency depreciation relative to other countries if: a. the profitability of investments in other countries increases relative to that country
b. people in the foreign currency markets expect the value of the currency to fall in the near future. c. the foreign demand for its exports decreases. d. any of the above occurs.
If the Fed decreases the money supply,
a. aggregate demand and aggregate supply both increase. b. aggregate demand increases, which leads to movement along the short-run aggregate supply curve. c. aggregate demand decreases, which leads to movement along the short-run aggregate supply curve. d. aggregate supply increases, which leads to movement along the aggregate demand curve. e. aggregate supply decreases, which leads to movement along the aggregate demand curve.
If the world price of coffee is lower than Colombia's domestic price of coffee without trade, then Colombia
a. should import coffee. b. has a comparative advantage in coffee. c. should produce just enough coffee to satisfy domestic demand. d. should produce no coffee domestically.
The California gold rush resulted in an increase in the amount of money in circulation and an increase in prices across the country
Indicate whether the statement is true or false