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
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The two biggest items of the U.S. federal government revenue that together account for over approximately 80 percent of total federal government revenue are
A) personal income taxes and Social Security taxes. B) personal income taxes and corporate income taxes. C) personal income taxes and sales taxes. D) corporate income taxes and Social Security taxes. E) corporate income taxes and property taxes.
Even if expectations of inflation are rational, sluggish adjustment of wages and prices will still create a short-run trade-off between inflation and unemployment
Indicate whether the statement is true or false
The demand for microwaves in a certain country is given by: D = 8,000 - 30P, where P is the price of a microwave. Supply by domestic microwave producers is: S = 4,000 + 10P. If this economy opens to trade while the world price of a microwave is $50, and the government imposes a tariff of $30 per microwave, then the domestic quantity supplied will be ________ microwaves.
A. 5,000 B. 4,800 C. 4,500 D. 4,000
OutputTotal RevenueTotal Cost0$0$501407428094312011741601425200172Refer to the above table. When the firm produces three units of output, it makes an economic:
A. loss of $3. B. profit of $40. C. profit of $3. D. profit of $17.