People benefit by participating in the market because
A. Market participation allows individuals to specialize and, with trade, ultimately consume more.
B. Participants in the market do not have to make choices.
C. Resources are no longer limited.
D. There are always participants in the market that are more efficient than you are in production.
Answer: A
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Suppose an MNC subsidiary buys 100 input units from its parent at a price of $2 each. It has $300 in additional production costs, and sells its 100 units of output for $6 to the MNC. It pays a 25% local profit tax
The MNC sells the output at home for $8, and its cost of producing inputs is $1 . It pays a profit tax of 20% at home on repatriated profits. What is the subsidiary net profit? Assume no selling costs at home. What is the MNC's total profit from the operation?
For a competitive firm
A) price is equal to marginal revenue. B) price is less than marginal revenue. C) demand is less than marginal revenue. D) demand is less than average revenue but equal to marginal revenue.
Suppose the banking system has no excess reserves, a reserve requirement ratio of 10%, and $50 billion of required reserves. What is the total checkable deposits in the banking system?
A. $50 billion B. $500 billion C. $450 billion D. $550 billion
One of the three reasons as to why the oversimplified multiplier formula overstates the multiplier is that it ignores price-level changes, which reduce the multiplier.
Answer the following statement true (T) or false (F)