Refer to the figure below.
If a price ceiling were imposed at point G, then producer surplus would be represented by the area ________.
A. DBC
B. 0GFQ2
C. DGF
D. 0DFQ2
Answer: C
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Assume that the elasticities of supply and demand in an industry are both equal to 2 and that it is currently untaxed. A new tax imposed on the industry will: a. be borne more by suppliers than demanders
b. be borne more by demanders than suppliers. c. be borne equally by demanders and suppliers. d. not raise any added revenue for the government since demand is relatively elastic.
Which is largest in an advanced economy like the U.S.?
A. GDP measured by income B. GDP measures by spending C. GDP measured by production D. the previous three have the same value
Point X is in the _____ phase of the business cycle.
A. prosperity
B. recovery
C. recession
D. depression
Which of the following would likely cause an increase in the supply of single-serve coffee makers?
A. a decrease in the cost of manufacturing single-serve coffee makers B. a widespread expectation that the price of single-serve coffee makers will rise in the future C. a decrease in the number of consumers demanding single-serve coffee makers D. an increase in the price of single-serve coffee makers