Joe is self-employed in a store that has a rental value of $500 a month which he pays, but he can vacate the building without giving notice. His other expenses are $100 a month for maintenance. He makes $25,000 a year on net sales (total revenue minus the wholesale cost of the product). If he quit his job and worked the same number of hours elsewhere at a job he liked equally well, he estimates that he could make $20,000 a year. No one else can be hired to work in the store. Joe should
A. work part-time.
B. quit his job.
C. keep the job.
D. It is impossible to say with the information given in the problem.
Answer: B
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What is a major reason international trade is restricted?
A) rent seeking B) to allow competition with cheap foreign labor C) to save jobs D) to prevent dumping E) to eliminate monopolies
Based on the table below, at what world price would the country import the good?
Price Q Demanded Q Supplied 2 100 70 4 95 75 6 90 80 8 85 85 10 80 90 12 75 95 A) a price below $8 B) at exactly $8 C) a price above $8 D) It is impossible to say.
Which of the following occurs with both perfectly price discriminating and single-price monopolies?
A) The amount of output is inefficient. B) All consumer surplus goes to the monopoly. C) Deadweight loss is created. D) There is a redistribution of consumer surplus to the monopoly.
Which of the following correctly explains how expansionary fiscal policy works?
A) G? ? C? ? Y? B) T? ? C? ? Y? C) M? ? i? ? I? ? Y? D) M? ? i? ? I? ? Y?