The amount of income a consumer has to spend on goods and services is known as
A) wealth. B) a budget constraint.
C) purchasing power. D) effective demand.
B
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Market equilibrium occurs when
A) other things remain the same. B) the market is changing rapidly. C) the quantity demanded equals the quantity supplied. D) buyers get the lowest possible price. E) everyone who wants the good gets the quantity he or she wants.
Why do firms pay dividends? It would appear that they are subject to double taxation, giving more incentive to eliminate them.
What will be an ideal response?
All of the following government actions create barriers to entry EXCEPT
A) limiting the number of airlines that may operate at an airport. B) granting a patent to a drug company. C) requiring a pizza parlor to get a business license. D) giving a power company exclusive use of the city's transmission lines.
Refer to the information provided in Figure 6.1 below to answer the question(s) that follow.
Figure 6.1Refer to Figure 6.1. Assume Tom's budget constraint is AC. If the price of a hamburger is $10, the price of a hot dog is
A. $4. B. $5. C. $10. D. $20.