Caren is willing to sell cakes at $5 per piece. The market price of each piece of cake is $10 . The producer surplus received by Caren from the sale of each piece is $10
a. True
b. False
Indicate whether the statement is true or false
False
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A sole proprietorship is characterized by:
a. separation of ownership and management. b. mutual agency. c. existence of multiple contracts. d. unlimited liability.
A firm in China sells toys to a U.S. department store chain. Other things the same, these sales
a. increase U.S. net exports and decrease Chinese net exports. b. decrease U.S. net exports and increase Chinese net exports. c. increase U.S. and Chinese net exports. d. decrease U.S. and Chinese net exports.
High energy prices in the 1970s created a ______.
a. positive supply shock b. negative supply shock c. period of deflation d. period of low unemployment
One reason the demand curve slopes ________ is that as prices fall ________.
A. downward; more people find that the price is now less than their reservation price B. downward; fewer people find that the price is now less than their reservation price C. upward; more people find that the price is now less than their reservation price D. upward; fewer people find that the price is now less than their reservation price