Suppose the Market Supply Curve Is P = 5

question 6

Multiple Choice

Suppose the market supply curve is p = 5 + Q.At a price of 10,producer surplus equals

• A) 50.
• B) 25.
• C) 12.50.
• D) 10.

Understand the role and impact of imports and exports on national accounts.

Differentiate between financial account surpluses and deficits.

Recognize the factors that directly alter a nation's balance of trade.

Identify the elements included in the current account of a nation's balance of payments.

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Definitions:

Production Possibility Frontier

A curve depicting the maximum attainable combinations of two or more products that a business can produce with limited resources.

Capital Goods

Long-lasting goods, such as equipment or buildings, used to produce other goods or services.

Consumer Goods

Products and services that are consumed by individuals or households to satisfy their needs or wants.

Command Economy

An economy in which a central government either directly or indirectly sets output targets, incomes, and prices.