Suppose a roll of paper towels costs $6 at Sam's Quick Stop, a local quick stop, and the same roll of paper towels costs $2 at Big Supplies, a large, retailer located in a more remote location. If a customer's total cost of travel to Sam's Quick Stop is $3 and is $6 to Big Supplies, which of the following is true?
A) It is cheaper for the consumer to buy the paper towels at Big Supplies.
B) It is more expensive for the consumer to buy the paper towels at Big Supplies.
C) The consumer is indifferent as to where they buy the paper towels.
D) It is cheaper for the consumer to buy the paper towels at Sam's Quick Stop.
A) It is cheaper for the consumer to buy the paper towels at Big Supplies.
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Which of the following is an example of a natural experiment?
A) A research on the effectiveness of a new medicine among some voluntary participants B) A study on the benefits of regular exercise by paying for the membership fees at fitness clubs for one-half of the participants C) A laboratory research on the effectiveness of solar power as an alternative source of fuel D) A research on the effect of air pollution on lung disorders by observing the health conditions of people who stay close to industrial areas and those who stay away from industries
To maximize its profit, the firm in the figure above will produce ________ jeans and set a price ________ per pair of jeans
A) 150; between $50 and $25 B) 125; $25 C) 125; $50 D) 125; $75 E) None of the above answers are correct.
If the CPI was 132.5 at the end of last year and 140.2 at the end of this year, the inflation rate over these two years was
A) 7.7 percent. B) 5.4 percent. C) 4.4 percent. D) 5.8 percent.
The net asset value of an open-end mutual fund is equal to the
A) profits of the fund. B) dividends paid out by the fund. C) market value of the securities held by the fund. D) price-earnings ratio of the fund.