Suppose the U.S. government has an annual budget of about $3.03 trillion. Does the U.S. government face the problem of scarcity?
a. No, a government with $3.03 trillion faces no real constraints.
b. No, scarcity does not apply to governments.
c. Yes, resources are limited even for the U.S. government.
d. Yes, although the U.S. government can easily obtain more resources.
e. Uncertain-economic theory has no answer to this question.
c
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All of the following are costs of expected inflation except
A) seigniorage. B) menu costs. C) velocity costs. D) tax distortions.
The demand curve represents the relationship between:
A. price and quantity demanded with everything else held constant. B. income and quantity demanded with everything else held constant. C. consumer preferences and quantity demanded with everything else held constant. D. income and price demanded with everything else held constant.
The demand curve faced by a perfectly competitive firm
a. is the market demand curve b. slopes downward c. is perfectly elastic d. is vertical e. rises when market supply rises
Brittany provides manicures at the only salon in town. Her marginal cost is constant at $5 per client, her fixed cost is $25 per day, and she is able to do 8 manicures per day. On a given day, half of her clients are willing to pay $15 for a manicure; half are willing to pay only $10 . If she charges $15 for those willing to pay a higher price and $10 to her other clients, then her maximum daily
profit equals a. $55 b. $100 c. $60 d. $35 e. $75