A tax accounting firm produces 500 tax returns units when the market price is $150 per return and produces 700 tax returns when the market price is $170 per tax return. Using the midpoint method, for this range of prices, the price elasticity of supply is about
a. 2.67.
b. 0.67.
c. 0.4.
d. 0.125.
a
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If lenders think that a particular borrower might default, they will demand a:
A. higher interest rate to make it worth taking that risk. B. lower interest rate to make it worth taking that risk. C. higher interest rate to decrease the amount of risk incurred. D. lower interest rate to decrease the amount of risk incurred.
Trade allows each country to take advantage of lower ___________ costs in the other country.
a. replacement b. opportunity c. marginal d. retail
During most of the period since 1962, federal government spending as a percentage of GDP has hovered around _____
a. 25–30% b. 10–15% c. 17–22% d. 20–25%
The nation of Loneland does not allow international trade. In Loneland, you can buy 1 pound of beef for 2 pounds of cheese. In neighboring countries, you can buy 2 pounds of beef for 3 pounds of cheese. If Loneland were to allow free trade, it would export cheese
a. True b. False Indicate whether the statement is true or false