Shopping at a warehouse, such as Sam's Club or Costco, allows its members to pay very low prices on the goods and services they buy. Customers who shop at such a store incur:
A. transaction costs because they must be members to shop there.
B. no transaction costs because they pay prices that are lower than any other location.
C. transaction costs because they must buy a product in bulk.
D. no transaction costs because members can return any item purchased for any reason.
A. transaction costs because they must be members to shop there.
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A permanent reduction in net exports leads to
A) a less than proportional decrease in real Gross Domestic Product (GDP). B) a more than proportional decrease in real Gross Domestic Product (GDP). C) a reduction in taxes, autonomous government spending, and a fall in real Gross Domestic Product (GDP). D) a proportional increase in real Gross Domestic Product (GDP).
In a market with positive externalities, the market equilibrium price will be greater than the efficient equilibrium price
Indicate whether the statement is true or false
Total income in an economy is equal to
A) the sum of wages, interest, rent, and profit. B) firm revenues. C) GDP minus net exports. D) income minus taxes.
As the economy recovers from a recession, we should expect that demand for:
a. inferior goods will fall and demand for non-inferior goods will rise. b. all goods will rise. c. inferior goods will rise and demand for non-inferior goods will fall. d. all goods will fall. e. complements will fall.