A pack of cigarettes costs $6. At the age of 16, some people start smoking one pack per day or 365 packs a year. Assume there is no increase in the future price of cigarettes. How much retirement wealth are these people sacrificing if they smoke until reaching the age of 66?
A) $2,190 (=$6 * 365 days).
B) $ 109,500 (=$2,190 * 50 years).
C) $6.
D) $109,500 plus the compound interest income that could have been earned on the funds over the 50 years.
D) $109,500 plus the compound interest income that could have been earned on the funds over the 50 years.
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Refer to the figure above. What is the producer surplus when Lithasia engages in trade and the government imposes a tariff of $1 on chairs?
A) $5 B) $20 C) $30 D) $40
the largest asset if the fed's balance sheet is
What will be an ideal response?
Which of the following supports the contention that monopolistic competitors have a strong incentive to engage in R&D?
A. Entry to monopolistic competitive industries is relatively easy and thus profit from innovation is quickly competed away. B. Most monopolistic competitive industries are decreasing-cost industries. C. The desire to differentiate products from competitors may motivate monopolistic competitors to engage in R&D. D. Monopolistic competitors have large retained earnings that are available to finance R&D.
The benefits to trading nations based on comparative advantage accrue from:
A. Specialization only B. Specialization and trading C. Trading only D. Protection of domestic industries