A consumer values a house at $525,000 and a producer values the same house at $485,000 . If the transaction is completed at $510,000 . what level of tax rate will result in unconsummated transaction?
a. 1%
b. 5%
c. 3%
d. 2%
b
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Each week Jim buys the same market basket composed of a case of ramen noodles, two bottles of coke, and three bags of tortilla chips. Jim has found that it takes more of his wages to buy this market basket than before. Jim is experiencing ________.
A. disinflation B. depreciation C. inflation D. deflation
Capital flows between countries are smaller than in past decades in absolute terms
Indicate whether the statement is true or false
Which of the following statements about the perfect competitor is INCORRECT?
A) The perfectly competitive firm is always a price taker. B) The perfect competitor sells a homogeneous commodity. C) If an individual firm raises price, it will lose business. D) The products made by a perfectly competitive firm have no close substitutes.
A competitive employer is using labor in such an amount that labor's MRP is $10 and its wage rate is $8. This firm:
A. should hire more labor because this will increase profits. B. should hire more labor, although this may either increase or decrease profits. C. is currently hiring the profit-maximizing amount of labor. D. is selling its product in an imperfectly competitive market.