Suppose that the hypothetical country of Prairieland suffers from chronic scarcity of its staple grain, wheat.
a. true
b. false
a. true
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A change in the distribution of income that leaves total income constant will not shift the market demand curve for a product providing:
a. everyone has an income elasticity of demand of zero for the product. b. everyone has the same income elasticity of demand for the product. c. individuals have differing income elasticities for the product, but the average income elasticity for income gainers is equal to the average income elasticity for income losers. d. any of the above conditions occur.
One year ago Sam purchased bonds for $100,000 . He just sold them for $120,000 . During the year the price level rose by 5%. If the tax rate on capital gains is 20%, how much did Sam gain in real terms?
A trade surplus occurs when:
A. exports exceed imports, so that a country is producing more than it is consuming. B. imports exceed exports, so that a country is producing more than it is consuming. C. imports exceed exports, so that a country is consuming more than it is producing. D. exports exceed imports, so that a country is consuming more than it is producing.
Which one of the following is not a retaliation strategy that firms would apply to one that cheated on a price-fixing scheme by selling at a price below the agreed-upon fixed price?
A. All other firms sell at the same low price as the cheating firm. B. All other firms sell at a price that ensures zero economic profit for all firms. C. Each period, all other firms sell at the price picked by the cheater in the previous period. D. All other firms would reduce their output.