Use Figure 13.2 which depicts a monopolist firm to help with the following question. Define the area of total costs that this firm will incur if it is maximizing profit. Use the letters that appear on the graph to identify the area

When China embarked on market changes towards urbanization and manufacturing in 1978, urban disposable incomes were 2.6 times greater than rural net income. By 2008 they were 3.3 times bigger

Which of the following have the market changes sketched above have most likely NOT caused? A) Increased income inequality between rural and urban populations B) A movement towards a bell-shaped distribution of income C) An increased Gini ratio D) The Lorenz curve for income to move further away to the line of equality

Using an equation, explain why governments prefer to avoid excessive current account surpluses?

What will be an ideal response?