The price consumers pay for a product in a perfectly competitive market is an inaccurate reflection of opportunity cost.
Answer the following statement true (T) or false (F)
False
The amount consumers are willing to pay for a good (its price) equals its opportunity cost (marginal cost).
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The graph shown best represents which of the following?
A. A tax on sellers
B. A subsidy to sellers
C. A price floor.
D. A subsidy to buyers
If total U.S. trade consists of $10 billion in electronics imports from Japan and $9 billion in automobile exports to Germany, then the U.S. net export account will be negative
a. True b. False Indicate whether the statement is true or false
Suppose a couple's decision about where to live was based on maximizing family income. The wife is offered a job elsewhere paying $35,000 more per year, but the husband would have to take a $60,000 pay cut to move with her so they stay. The fact that the wife's salary is lower than average in her field is a result of
a. compensating differentials. b. supply decisions by the workers. c. gender discrimination. d. differences in human capital.
If the U.S. government increased its spending by $100 billion and increased taxes by $100 billion, the net effect on Aggregate Demand would be:
a. Neutral (i.e., no change in aggregate demand). b. To increase aggregate demand. c. To decrease aggregate demand. d. To increase aggregate supply. e. To decrease aggregate supply.