Which of the following transactions would take place in the "underground economy"?
A) Matt bought an iPad for $499 but decided to sell it on eBay instead of keeping it.
B) Elizabeth tells her mother she's going to work but really goes to see a movie.
C) Paul buys 15 gallons of gasoline for $3.29 a gallon, not realizing that $1.50 per gallon of that price goes to the government as tax revenue.
D) John makes chain-link belts and necklaces and sells them at a local flea market for cash to avoid paying taxes.
D
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These are the cost and revenue curves associated with a firm.
Assuming the firm in the graph shown is producing Q1 and charging P3 in the long run, then the deadweight loss is
A. Area A. B. Area B. C. Area C. D. There is no deadweight loss.
The nondiscriminating pure monopolist's demand curve:
A. is the industry demand curve. B. tends to be inelastic at high prices and elastic at low prices. C. is identical to its marginal revenue curve. D. shows a direct or positive relationship between price and quantity demanded.
Using the economic way of thinking, which of the statements listed below best answers the following question: Why do professional athletes tend to make more money than professional poets?
A) Americans love sports and hate poetry. B) Poets are less greedy and materialistic than athletes. C) More people are willing to pay $50 per ticket to see an athletic competition than they are to listen to a poet. D) The supply of poets is too low.
When a country abandons no-trade policies in favor of free-trade policies and becomes an importer of steel, then the domestic price of steel will increase as a result
a. True b. False Indicate whether the statement is true or false