The total gains from trade within a price system is
A) the area beneath the market demand curve and above the market clearing price plus the area above the market supply curve and beneath the market clearing price.
B) the area beneath the market supply curve and above the market clearing price plus the area above the market demand curve and beneath the market clearing price.
C) the area beneath the market demand curve and above the market clearing price minus the area beneath the market supply curve and beneath the market clearing price.
D) always equal to zero.
A
You might also like to view...
According to the short-run aggregate supply curve, if output minus potential output equals zero, then ________
A) unemployment might be zero B) inflation might be stable C) expected inflation must be stable D) price shocks must be zero E) none of the above
Each district bank of the Fed comprises of nine board of directors of which three are appointed by the:
a. Federal Reserve System member banks. b. President. c. Attorney General. d. Board of Governors of the Fed. e. Congress.
A centrally planned economy has a planning authority that decides:
A. what products to produce. B. how the products are produced. C. who receives the products. D. All of these.
If the price of steel increases drastically, the quantity of steel demanded by the building industry will fall significantly over the long run because
A) buyers of steel are more sensitive to a price change if they have more time to adjust to the price change. B) buyers of steel are less sensitive to a price change if they have more time to adjust to the price change. C) sales revenue in the building industry will fall sharply. D) profits will fall by a greater amount in the long run than in the short run.