In the provided graph, the equilibrium point in the market is where the S and D curves intersect. At equilibrium, the producer surplus would be represented by the area
A. b + c.
B. a + b.
C. b.
D. b + c + d.
Answer: C. b.
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In October of 2014, the interest rate on money market accounts was about 0.2 percent. In 2007, the interest rate on money market accounts was about 4.0 percent. What has been the impact on money demand from this fall in the interest rate?
A) the money demand curve shifted to the right B) the money demand curve shifted to the left C) the quantity of money demanded increased D) the quantity of money demanded decreased
Comment on the following statement: "When there are no externalities present, the level of output for a private good produced by a perfectly competitive firm is efficient."
What will be an ideal response?
In Maslow's Hierarchy of Needs, what is the level that is least likely to be achieved?
a. Physiological b. Safety and security c. Belongingness d. Self-actualization
Which of the following correctly describes a foreign exchange market?
a. A place where foreign goods are bought and sold in any country b. A market in which foreign tourists can buy domestic goods c. A global market in which people exchange one currency for another d. A place where contracts to deliver agricultural products across countries are exchanged e. A market where the central banks of different countries exchange government bonds