A consumer values a car at $525,00 . and a producer values the same car at $485,000 . If sales tax is 8% and is levied on the buyer, then the buyers top dollar price is
a. $525,000
b. $523,800
c. $485,000
d. $486,111
d
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The concept of “random walk” applies most closely to forecasts of
A. consumer demand for a product after a price increase. B. the effects of a tax on the supply of oil. C. the effects of transfer payments on labor supply. D. the price of a particular stock one year from now.
If a marginal cost pricing rule is imposed on the firm in the figure above, the firm will produce
A) 5 units. B) 20 units. C) 30 units. D) 40 units.
Suppose that changes in the interest rate have absolutely no effect on the demand for money. The resulting ________ LM curve causes monetary policy to have ________ effect in changing income
A) horizontal, no B) horizontal, an unusually strong C) vertical, no D) vertical, an unusually strong
Cross elasticity among goods in a perfectly competitive market is infinite
Indicate whether the statement is true or false