In a market economy, what must an entrepreneur do in order to be successful?
a. purchase resources at lower prices than rivals
b. produce a good that can be sold for more than its production cost
c. obtain large subsidies from the government
d. hire workers at low wage rates
B
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If you negotiated a salary based on an anticipated inflation rate of 4 percent, and the actual inflation rate turned out to be 6 percent
A) your employer would have gained at your expense. B) your real wage will increase, but your nominal wage will decrease. C) the purchasing power of your wages will not change, since purchasing power is based on your nominal wage. D) the purchasing power of your real wages would be more than you anticipated.
From 1800-1860 which part of the nation was most opposed to high tariffs?
a. South. b. New England. c. Middle Atlantic States. d. Far Western States.
Assume that foreign capital flows into a nation rise due to expected increases in stock market appreciation. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the GDP Price Index and reserves account in the context of the Three-Sector-Model? a. The GDP Price Index rises and reserves account becomes more negative (or less positive)
b. The GDP Price Index falls and reserves account remains the same. c. The GDP Price Index and reserves account remain the same. d. The GDP Price Index rises and reserves account remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
This figure displays the choices and payoffs (company profits) of two music shops-MiiTunes and The Rock Shop. MiiTunes is an established business in the area deciding whether to charge its usual high prices or to charge very low prices, in the hopes that a new business will not be able to make a profit at such low prices. The Rock Shop is trying to decide whether or not it should enter the market and compete with MiiTunes.According to the figure, if The Rock Shop enters the market, MiiTunes should:
A. leave the market. B. give an ultimatum to The Rock Shop. C. charge a high price. D. charge a low price.