If Allan lives in Boston and decides to buy a pair of hockey skates from Canada for $100, and the Canadian he bought them from buys a baseball hat and jersey for $100 from Boston, then the U.S. next exports:
A. and net capital outflow are both zero.
B. and net capital outflow both equal ?$100.
C. is zero and net capital outflow is ?$100.
D. equals ?$100 and net capital outflow is zero.
A. and net capital outflow are both zero.
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In order to predict behavior, economic models must be realistic.
Answer the following statement true (T) or false (F)
Kate and Alice are small-town ready-mix concrete duopolists. The market demand function is Qd = 20,000 - 200P, where P is the price of a cubic yard of concrete and Qd is the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard. The Cournot model describes the competition in this market. What is the amount of the deadweight loss?
A. $8,888.89 B. $2,222.22 C. $1,333,33 D. $4,444.44
The average revenue curve can also be described as the demand curve
a. True b. False Indicate whether the statement is true or false
Tyler purchases 5 pounds of hot dogs per month when his monthly income is $2,000 and 4 pounds of hot dogs per month when his monthly income is $2,200 . Tyler's income elasticity of demand for hot dogs is
a. 2.33, and hot dogs are a normal good. b. -2.33, and hot dogs are an inferior good. c. 0.43, and hot dogs are a normal good. d. -0.43, and hot dogs are an inferior good.