A seller's reservation price is generally equal to:
A. the seller's marginal cost.
B. the market price.
C. the buyer's reservation price.
D. the seller's average cost.
Answer: A
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Suppose you are making $50,000 per year and paying $5,000 per year in income taxes. You get a $10,000 per year raise and your income taxes are now $6,500 per year. Based on this information, the income tax system is
A) proportional. B) progressive. C) regressive. D) bracketed.
Laissez-faire proponents contend that the government can serve a valuable role in encouraging firms to engage in research and development by creating a patent system
Indicate whether the statement is true or false
Evidence indicates that the average economic profits of invention are
A. well above zero. B. slightly above zero. C. equal to zero. D. less than zero.
If, with one unit of labor, the U.S. can produce 20 units of computer software and 10 units of computer hardware, and China can produce 5 units of software and 5 units of hardware, then
A. the United States has a comparative and absolute advantage in both goods. B. China has a comparative and absolute advantage in both goods. C. the United States has a comparative advantage in both goods. D. the United States has an absolute advantage in both goods.