Graphically, consumer surplus is the area below the demand curve and above the price

According to Richard Baldwin, studies indicating massive increases in trade resulting from currency unions are:

A) biased because of use of data from rich countries. B) generally applicable to the euro. C) underestimating the impact of the euro on intra-European Union trade. D) not the result of lowering the transaction costs for trade within the euro area.

According to the paradox of value, expensive goods, such as gemstones, provide consumers with

A) high total utility and low marginal utility. B) low total utility and low marginal utility. C) low total utility and high marginal utility. D) high marginal utility and high total utility.