If Sam sells his product for $10 per unit net of costs and just breaks even after transporting it 5 miles to the market, Susan, who lives only 2 miles from the market will
a. experience lower profits
b. earn a location rent
c. find it profitable to purchase Sam's land
d. derive a consumer's surplus
e. none of the above
B
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In the diagrams below, the subscript "1" refers to the initial position of the curve, while the subscript "2" refers to the final position after the curve shifts.
In which of the diagrams above would we see a shortage at the initial price after the indicated curve has shifted?
A. (1) and (4) B. (2) and (3) C. (1) and (3) D. (2) and (4)
Suppose that the exchange rate between Mexican pesos and dollars is 8 pesos per dollar. If the exchange rate goes to 6 pesos per dollar, it would tend to: a. increase U.S. exports to Mexico
b. decrease U.S. exports to Mexico. c. increase Mexican exports to the rest of the world. d. decrease Mexican exports to the rest of the world.
Which statement is true?
A. Poverty has been a problem only since 1933. B. Poverty cannot be inherited. C. There are more poor Americans today than at any other time in our history. D. Poverty is less of a problem today than it was in the early 1960s.
Even though credit cards are used by many people in making purchases, they are not included in the M1. A major reason is that
A. credit cards are a way of going into debt, whereas the components of M1 represent assets. B. credit cards had not yet been invented when money was defined. C. some credit cards are issued by stores (such as Sears), whereas all money is issued by banks. D. credit cards are much less liquid than M1.