The Law of One Price holds true because
a. All farmers agree on a single price to sell their product
b. Government price supports level the playing field
c. Profit seeking individuals try to buy low and sell high d. Food is generally price inelastic
c. Profit seeking individuals try to buy low and sell high d. Food is generally price inelastic
You might also like to view...
When Lonnie produces 1 pair of cowboy boots his costs total $300. When he produces 2 pairs of cowboy boots his total costs are $500. This means that Lonnie's marginal cost of producing the second pair of cowboy boots is $200
Indicate whether the statement is true or false
According to the principle of subsidiarity, in which of the following areas should the authority for making decisions be taken from national governments and given to the EU?
A) Pollution of a trans-national waterway B) Limits on the hours retails stores are allowed to be open C) Highway traffic laws D) Recycling requirements on packaging E) All of the above.
Refer to the indifference curve in Figure 3.3. Which of the following is true about the MRS?
A) It is negative. B) It is positive. C) It is equal to zero. D) It is undefined.
Earnings usually reflect a person's productivity. What are factors that cause differences in productivity across people so that earnings differ too?
What will be an ideal response?