Refer to the above table. If the price of a movie download is $2 and the price of an apple pie is $5 and the consumer has $19, the rational consumer will purchase
A. 5 movies and 6 apple pies.
B. 6 movies and 6 apple pies.
C. 2 movies and 3 apple pies.
D. 2 movies and 2 apple pies.
Answer: C
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Which of the following is true?
A) Profit as calculated by accountants and economic profit are not necessarily equal. B) Profit as calculated by accountants is always smaller than economic profit. C) Economic profit ignores implicit costs. D) The Internal Revenue Service taxes the firm's economic profit but not its normal profit. E) The Internal Revenue Service taxes the firm's normal profit but not its economic profit.
The concept of economic rent can be applied to
A) land only. B) land and natural resources only. C) land, natural resources, and paintings by dead masters only. D) any resource that cannot be replicated exactly.
Assuming that wine is a normal good, an increase in consumer income, other things being equal, will:
a. cause an upward movement along the demand curve for wine. b. shift the demand curve for wine to the left. c. cause a downward movement along the demand curve for wine. d. shift the demand curve for wine to the right.
The primary source of revenue at the federal level is:
a. the corporate income tax. b. the personal income tax. c. property taxes. d. sales taxes. e. customs duties.