According to the graph shown, the area ABC represents consumer surplus in an economy with:
This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
A. free trade.
B. autarky.
C. a tariff being imposed on trade.
D. None of these is true.
B. autarky.
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The proposal to keep the quantity of money growing at a slow constant rate is an example of
A) a constant federal funds rate rule. B) a nominal GDP targeting rule. C) an inflation rate targeting rule. D) discretionary policy. E) a money targeting rule.
If the quantity of corn is such that the marginal cost of corn is greater than the marginal benefit of corn, then I. there is a deadweight loss. II. more than the efficient quantity of corn is produced
A) Only I is correct. B) Only II is correct. C) Both I and II are correct. D) Neither I nor II is correct.