Augustus bought his BMW convertible as a new car in 1998 and knows that it is in excellent condition. He now wants to sell it and knows that there are many other similar cars on the used car market that are lemons. As a result:
A) he should be able to sell my car at a premium price because of its excellent condition.
B) he will have to accept a lower price for his car because buyers might think that it is a lemon.
C) he will not be able to sell his car unless he offers some sort of guarantee.
D) he will get the best price for his car by selling it to a dealer.
B
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Taxes that change with the level of real GDP and income are called
A) flexible taxes. B) voluntary taxes. C) induced taxes. D) forced taxes. E) GDP taxes.
When a temporary adverse supply shock hits a large open economy, it causes the current account to ________ and investment to ________
A) fall; fall B) rise; remain unchanged C) fall; remain unchanged D) rise; fall
Consumption goods are
A. a form of investment. B. goods purchased from savings. C. goods purchased by households for immediate use. D. a form of capital goods.
Refer to Scenario 7.4 below to answer the question(s) that follow.SCENARIO 7.4: You own and are the only employee of a company that sells custom embroidered pet sweaters. Last year your total revenue was $120,000. Your costs for equipment, rent, and supplies were $30,000. To start this business you invested an amount of your own capital that could pay you a $50,000 a year return.Refer to Scenario 7.4. Your accounting profit last year was
A. $20,000. B. $40,000. C. $70,000. D. $90,000.