The law of one price
A) is a law passed by Congress that prohibits firms from selling a product at two different prices in the same market at the same time.
B) states that consumers will pay any price for a product that has a perfectly inelastic demand curve.
C) states that consumers can only buy one good or service at a time.
D) states that identical products should sell for the same price everywhere.
D
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If product prices were stated in terms of tobacco leaves, then tobacco leaves would be functioning primarily as
A. a unit of account. B. fiat money. C. legal tender. D. a store of value.
Which of the following is an objective of fiscal policy?
A) high rates of economic growth B) discovering a cure for AIDs C) energy independence from Middle East oil D) health care coverage for all Americans E) homeland security
Which of the following is a major criticism of a monopoly as a cause of allocative inefficiency?
a. A monopolist fails to expand output to the level where the consumers' evaluation of an additional unit is just equal to its opportunity cost b. A monopolist has no incentive to produce efficiently, because even if it pays no attention to the costs of production, it will be guaranteed an economic profit c. A monopolist will always make profits therefore providing an incentive to keep prices at the level that maximizes consumer surplus d. A monopolist has an advantage because it can purchase the resources in a competitive market e. Consumer surplus would no longer be equal to producer surplus
Which is the best example of an intangible good?
A. the advice and expertise provided by the music store clerk who sold you that CD B. the textbook study guide you hope will prepare you to perform well on examinations C. the suit you hope will make a good impression when you go on job interviews D. the car you dream of owning but cannot afford