The above figure shows the U.S. market for wheat. When there is no international trade, consumer surplus is equal to ________
A) area A + area B + area C
B) area A
C) area E + area F
D) area B + area C + area D
E) area A + area B + area C + area D
A
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When consumers have less information about a product than do sellers, then this is the situation of
A) asymmetric information. B) symmetric information. C) caveat emptor. D) a market failure.
All of the following are good reasons for an applied econometrician to learn some econometric theory, with the exception of
A) turning your statistical software from a "black box" into a flexible toolkit from which you are able to select the right tool for a given job. B) understanding econometric theory lets you appreciate why these tools work and what assumptions are required for each tool to work properly. C) learning how to invert a 4×4 matrix by hand. D) helping you recognize when a tool will not work well in an application and when it is time for you to look for a different econometric approach.