The law of one price holds exactly only if
A) buyers have complete information. B) antitrust laws are being enforced.
C) it is impossible for buyers to resell the good. D) transactions costs are zero.
D
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In an Israeli factory, each worker can produce 2/5 of a shirt in an hour or 1/10 of a pair of pants in an hour. If there are 500 workers in the factory, what is opportunity cost of producing one shirt?
a. 1 pair of pants b. 4 pairs of pants c. 1/2 pair of pants d. 1/4 pair of pants e. 2 pairs of pants
Under a negative income tax program, if a minimum income is set at $16,000 for a family of four and the tax rate is 25%, a family earning $8,000 would have an after tax income of
a. $16,000 b. $8,000 c. $22,000 d. $6,000 e. $12,000
In long-run competitive equilibrium, the perfectly competitive firm produces where price equals minimum average total cost
a. What is this efficiency criterion called? b. How does it benefit consumers?
The largest securities exchange in the United States is the
a. American Stock Exchange b. Chicago Board of Trade c. Securities and Exchange Commission d. New York Stock Exchange e. Federal Trade Commission