Consumer surplus is given by the area:
a. above the supply curve but below the price
b. below the supply curve
c. below the demand curve but above the price
d. below the demand curve
e. none of the above
Ans: c. below the demand curve but above the price
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Which of the following is an example of money serving as a medium of exchange?
a. Richard puts money into a piggy bank. b. Ellen deposits cash into a money market account. c. Sean puts a new $20 bill into his currency collection. d. Marian buys a carbo-loaded drink before a marathon.
Import quotas and tariffs produce some common results. Which of the following is not one of those common results?
a. Total surplus in the domestic country falls. b. Producer surplus in the domestic country increases. c. The domestic country experiences a deadweight loss. d. Revenue is raised for the domestic government.