The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________.  

A. recessionary; B
B. recessionary; C
C. recessionary; A
D. expansionary; A

Answer: C

Economics

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Tom's marginal utility of Mountain Dew exceeds his marginal utility of crackers at his consumer equilibrium. Therefore, his consumer surplus from Mountain Dew must exceed his consumer surplus from crackers

Indicate whether the statement is true or false

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Which of the following is NOT a challenge to doing business in China?

A) Issues related to the business climate, such as taxes B) The availability of credit C) Failure to protect intellectual property D) Poor infrastructure and port facilities to support export of products

Economics