​Exhibit 18-5 ​

question 25

Multiple Choice

​Exhibit 18-5
​
-Refer to Exhibit 18-5. The change in producer surplus from free trade is equal to area:

• A)​A + B + E
• B)​E + B + C + D
• C)​B
• D)​E + B

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Definitions:

Discount Rate

The interest rate charged to commercial banks and other depository institutions on loans they receive from the Federal Reserve's discount window.

Note Payable

A written promise to pay a specific amount to a party on a certain date or on demand. It is a liability in the books of the borrower.

Due Date

The specified date by which a payment must be made, or a task or assignment must be completed.

Defined Contribution Plan

A pension plan that requires a fixed amount of money to be invested on the employee’s behalf during the employee’s working years.