Consider a car dealership advertises a three-year lease at $250 per month. When you arrive to apply, you discover that the lease requires a down payment of $3600 dollars. You will undertake the lease if
A) you value the lease at least $350 per month.
B) you value the lease at least $250 per month, the $3600 is a sunk cost.
C) you value the lease less than $350 per month.
D) you value buying a new car at $400 per month.
A
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If a German firm owns a U.S.-based firm that is domiciled in the U.S., the combined firm is subject to the corporate tax laws in ________ and income tax laws in ________.
A) Germany; Germany B) Germany; U.S. C) U.S.; Germany D) U.S.; U.S.
Suppose that for each firm in the competitive market for potatoes, long-run average cost is minimized at $0.20 per pound when 500 pounds are grown. The demand for potatoes is Q = 10,000/p. If the long-run supply curve is horizontal, then how many pounds of potatoes will be consumed in total?
A) 0 B) 500 C) 10,000 D) 50,000
The falling phase of a business cycle measured by a decrease in real GDP is called:
A) hyperinflation. B) expansion. C) recession. D) peak.
Which of the following might lead a nation to engage in international trade? a. Differences in natural endowments such as climate. b. Differences in skills of the labor force
c. Differences in endowments of natural resources. d. All of the above.