If marijuana were legalized, it is likely that there would be an increase in the supply of marijuana. Those in favor of legalizing marijuana argue that this would generate less revenue to illegal suppliers. The legalize marijuana proponents must believe the:
a. demand for marijuana is elastic
b. demand for marijuana is inelastic.
c. demand for for marijuana is unit elastic.
d. none of the above.
b
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When a baker exchanges a pie for dollars, this is an example of dollars serving as
A. a unit of account. B. a store of value. C. a medium of exchange. D. barter.
Price increases always reduce economic efficiency.
Answer the following statement true (T) or false (F)
Suppose a quota on foreign-made automobiles is proposed in Congress. Which of the following groups is most likely to oppose the bill?
a. American Automobiles Manufacturers. b. Consumers. c. American Steel Workers. d. United Auto Workers.
Refer to Scenario 7.6 below to answer the question(s) that follow. SCENARIO 7.6: Upon graduating with an accounting degree, you open your own accounting firm of which you and your assistant are the only employees. To start the firm you passed on a job offer with a large accounting firm that offered you a salary of $50,000 annually. Last year you earned a total revenue of $120,000. Rent and supplies last year were $50,000. Your assistant's salary is $30,000 annually.Refer to Scenario 7.6. Your annual economic profit is
A. -$10,000. B. $20,000. C. $40,000. D. $70,000.