If production costs increase, the price level will rise.
Answer the following statement true (T) or false (F)
True
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Which of the following statements is true?
A. Accounting profit is always positive. B. Economic profit is always positive. C. Accounting profit is greater than or equal to economic profit. D. Economic profit is greater than or equal to accounting profit.
If you have $1,000 in wealth and the price level increases by 20 percent, then
A) the $1,000 will buy fewer goods and services. B) the $1,000 dollars will buy 20 percent more goods and services. C) the real value of the $1,000 increases. D) you will be able to buy fewer goods, but the real value of those goods will increase.
Consider two people, Sandy Smith, who earns $25,000 . and Gary Carver, who earns $50,000 . If the government has decided to tax everyone's first $25,000 at 20 percent and everyone's second $25,000 at 40 percent, then:
a. Gary and Sandy both pay taxes of the same percentage of total income. b. Gary and Sandy pay the same amount of taxes. c. Gary pays twice the tax amount Sandy pays. d. Gary pays three times the tax amount Sandy pays. e. Sandy does not pay taxes.
Compared to their initial positions at points A and B, as a result of complete specialization and trade, the output of the two countries added together in Figure 35.1 would result in an increase in
A. Neither DVD players nor motorcycles. B. Both DVD players and motorcycles. C. Motorcycles only. D. DVD players only.