Which of the following is an example of the law of one price?
A. Because their countries have similar institutions, computer programmers in Germany and the United States either are or will be paid about the same.
B. Because people have essentially the same basic needs wherever they live, they tend to buy the same bundle of goods.
C. Exchange rates tend to have equivalent values. For example, one euro equals one U.S. dollar.
D. Because wages are so much lower in China, eventually all U.S. jobs will be outsourced to China, leaving the United States to import all goods at one price.
Answer: A
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A) elastic. B) inelastic. C) unit elastic. D) perfectly elastic. E) perfectly inelastic.
Refer to the figure above. What is the maximum profit that the firm can make?
A) $30 B) $60 C) $90 D) $180
Use Figure 13.2 which depicts a monopolist firm to help with the following question. Define the area of total revenue that this firm will collect if it is maximizing profit. Use the letters that appear on the graph to identify the area
What will be an ideal response?
When they first appeared in the U.S., corporations did not have all the advantages that they have today. For example, early corporations:
a. had to be re-chartered upon the death of a shareholder. b. were taxed at a higher rate than sole proprietorships and partnerships. c. did not have the legal protection of limited liability. d. were not allowed to have more than 12 shareholders. e. All of the above.