In the above figure, a sales tax of $1 per unit imposed on sellers ________ the price buyers pay and ________ the price that suppliers keep for themselves
A) affects; does not affect
B) does not affect; affects
C) does not affect; does not affect
D) affects; affects
D
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Refer to Figure 2-3. Carlos Vanya grows tomatoes and strawberries on his land. His land is equally suited for growing either fruit. Which of the graphs in Figure 2-3 represents his production possibilities frontier?
A) Graph A B) Graph B C) Graph C D) either Graph A or Graph B E) either Graph B or Graph C
A narrow bid-asked spread indicates that a security has
A) small price fluctuations. B) high liquidity costs. C) low transaction volume. D) a thin market.
You have won the lottery. There are two payment options for you. The first option is a lump sum payment of $10 million that you will receive immediately. The second option is an annual payment of $1 million for each of the next 12 years
Assume there is no inflation. How would you make a decision between the two options?
As opposed to a payments system based on barter, a payments system based on money
a. requires a double coincidence of wants. b. leads to less specialization. c. makes trades less costly. d. None of the above is correct.