Refer to Scenario 3.1 below to answer the question(s) that follow.SCENARIO 3.1-Streaming movies and movies shown in theaters are substitutes. -Streaming movies and OLED TVs are complements. -OLED TVs and movies shown in theaters are normal goods. -People watch streaming movies more often in the winter than in the summer.Refer to Scenario 3.1. Most OLED TVs sold in the United States are imported from Asia. If the United States government eliminates a quota that reduced the number of OLED TVs that can be imported into the United States, ceteris paribus, what would happen?
A. The price of OLED TVs would increase and the price of streaming movies would decrease.
B. The price of OLED TVs would decrease and the price of streaming movies would increase.
C. The price of OLED TVs and the price of streaming movies would increase.
D. The price of OLED TVs and the price of streaming movies would decrease.
Answer: B
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Martha Stewart earns $4,000 and she wants to save it for retirement, which is 10 years away. She can either save it in a taxable account or put it into a Roth IRA. Suppose that Martha can receive an annual rate of return of 8 percent and her marginal tax rate is 25 percent. By the time she reaches retirement, how much money would she have in either option? NOTE: Martha has to pay tax on the $4,000, so she cannot put the full amount into either the taxable account or the Roth.
What will be an ideal response?
What type of cost is defined as at least what the resource could earn in its best alternative use?
a. implicit cost b. explicit cost c. opportunity cost d. total cost
Which of the following is an accurate statement concerning effects on the supply curve?
a. Few events will affect the supply curve but not the demand curve. b. Few events will affect the equilibrium curve but not the supply curve. c. Many events will affect the supply curve but not the demand curve. d. Many events will affect the supply curve but not the equilibrium curve.
Which of the following would increase aggregate demand?
What will be an ideal response?