If a book has a royalty rate of 15%, 10,000 copies are sold to bookstores at $50 each, and the bookstore sells the books to students for $62.50, the author will be paid
A. nothing.
B. $75,000 (.15*50*10,000).
C. $93,750 (.15*62.50*10,000).
D. $125,000 ((62.50-50)*10,000).
Answer: B
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Some environmentalists argue that we should protect the environment as much as possible, regardless of cost. Which of the following is not a likely outcome of pursuing such a course of action?
a. lower levels of nutrition, health care, and housing b. a lower standard of living c. slowing or reversing technological advancement d. the elimination of all pollution
Which of the following policy actions by the Fed would cause the money supply to decrease?
A. an open market purchase of government securities B. a decrease in required reserve ratios C. a decrease in the discount rate D. an open-market sale of government securities
Refer to the information provided in Figure 4.5 below to answer the question(s) that follow.
Figure 4.5Refer to Figure 4.5. Assume that initially there is free trade. If the United States then imposes a $10.00 tariff per CD-Rom drive on imported CD-Rom drives,
A. the quantity of CD-Rom drives supplied by U.S. firms will increase by 3 million. B. U.S. imports of CD-Rom drives will increase by 3 million. C. the quantity of CD-Rom drives demanded will be reduced by 6 million. D. the price of CD-Rom drives in the United States will decrease to $5.
In a perfectly competitive industry, the demand for a single firm's product is perfectly elastic
A) because this firm's output is a perfect substitute for any other firm's output. B) because this firm is a price maker. C) only in the long run. D) because there are many buyers in this market.