In the example of the Nike running shoe, we see that
A) selling costs account for over half of a shoe's retail price.
B) materials actually account for two-thirds of the retail price of the shoes.
C) taxes account for one-quarter of the retail price of the shoes.
D) production costs exceed selling costs by a wide margin.
E) raw materials costs are by far the largest component of the total costs of producing the shoes.
A
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A demand curve can be thought of as
A. a graphical display of “market potential.” B. a graphical representation of the information in a demand schedule. C. showing how much people want to buy. D. a forecasting tool. E. All of these responses are correct.
Of the following, which is the largest source of government funds in the long run?
A) government borrowing B) government transfers C) user fees D) taxation
Prices set too low can actually be against the public interest.
Answer the following statement true (T) or false (F)
If the price of hot dogs were to decrease, which of the following changes would we expect to occur in the hot dog bun market?
a. The equilibrium price of hot dog buns would decrease and the quantity of hot dog buns sold would increase. b. The equilibrium price of hot dog buns would increase and the quantity of hot dog buns sold would decrease. c. The equilibrium price of hot dog buns would increase and the quantity of hot dog buns sold would increase. d. The equilibrium price of hot dog buns would decrease and the quantity of hot dog buns sold would decrease. e. The equilibrium price of hot dog buns would stay the same and the quantity of hot dog buns sold would increase.