At a Mufflers-R-Us repair shop customers have the opportunity to wait in a room with chairs, a television, magazines, coffee and donuts. The economic way of thinking suggests the muffler shop is
A) selling mufflers below cost.
B) selling the additional goods and services below cost.
C) attempting to increase its total profit
D) engaging in unfair trade practice because it provides the goods and services free of charge.
E) almost certainly doing none of the above.
C
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Given the information in the table above. What is the opportunity cost of Cloth in terms of Widgets in Foreign?
What will be an ideal response?
The interest parity condition indicates that the interest differential is equal to the
A) risk premium. B) forward premium. C) futures premium. D) arbitrage premium.
The demand for most agricultural products tend to be price inelastic
a. True b. False
The function of economic institutions is to:
a. determine the profit margin of producers. b. determine how much an economy benefits from trade. c. define the environment in which we can trade. d. define the terms of trade between nations.