Total surplus is represented by the area below the
a. demand curve and above the price.
b. price and up to the point of equilibrium.
c. demand curve and above the supply curve, up to the equilibrium quantity.
d. demand curve and above the horizontal axis, up to the equilibrium quantity.
c
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Which of the following is NOT one of the determinants of the gains of adopting a single currency?
A) A well-synchronized business cycle involving all member countries B) The possibility of factors of production to freely move across borders C) The willingness and ability of member countries to design policies to address regional imbalances that may develop D) Widening the common market by allowing other countries to join E) None of the above.
The American Revolution, the Civil War (1861–65) and World War I (1914–18)
(a) diverted U.S. resources from peace-time, private uses and toward war-related uses. (b) encouraged the efficient allocation of resources. (c) increased long-term investment opportunities. (d) resulted in the excessive contraction of money to finance war efforts.