Refer to Table 12-3. What price (P) will Arnie charge and how much profit will he earn if the market price of basketballs is $12.50?
A) Price and profit cannot be determined from the information given.
B) P = $12.50; profit = $22.50
C) P = $12.50; profit = $52.50
D) P = $20; profit = $75.00.
B
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Which of the following explains why the AD curve is downward sloping?
a. a lower price level forces the government to reduce taxes, shifting the IS curve to the right and increasing income. b. A lower price level forces the central bank to increase the money supply, shifting the LM curve to the right and increasing income. c. A lower price level increases real money balances, shifting the LM curve to the right and increasing income. d. none of the above are correct.
Restricting imports usually leads to
A) a country producing beyond its production possibilities frontier. B) a country consuming even further beyond its production possibilities frontier. C) a reduction in exports and employment. D) a higher per capita level of real consumption.
The primary purpose of a strike by labor unions is to
A) force the firm out of business. B) extract from the firm better and improved conditions of work or contract terms. C) secure a larger market share for the firm. D) ensure they get paid for striking.
A monopolist's supply curve is vertical
a. True b. False Indicate whether the statement is true or false