A friend claims that the United States is a net international debtor. The best way of testing this claim is to see whether
A. U.S. foreign liabilities exceeded U.S. foreign income.
B. U.S. official reserve assets were positive or negative.
C. U.S. receipts from foreign assets exceeded U.S. payments to foreign owners of U.S. assets.
D. the United States ran a balance of payments surplus or deficit last year.
Answer: C
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"Sin taxes," such as taxes on alcoholic beverages, are intended to
A) generate funds to aid in the medical care of those harmed by the product. B) reduce the quantity demanded. C) generate money to subsidize production of the products taxed. D) increase the amount of the products supplied.
Figure 7.5
The consumer must decide how to split $20 between spending and saving.Refer to Figure 7.5. If the consumer uses cognition to offset present bias, he/she will maximize utility at a marginal utility per dollar of ________ utils for consumption and ________ utils for saving.
A. 15; 15 B. 15; 30 C. 30; 15 D. 30; 30
Use the following table to answer the question below.Price per UnitQuantity Demanded per YearQuantity Supplied per Year$52,0000101,800300151,600600201,400900251,2001,200301,0001,500A surplus of 500 units will occur when the price is
A. $30 per unit. B. $15 per unit. C. $20 per unit. D. $10 per unit.
Refer to Figure 14-1. Should Lexus lower its price in order to deter BMW's entry into the luxury hybrid automobile market?
A) Yes, it will drive BMW out of the market. B) No, it should keep the same price and work to capitalize on its brand loyalty. C) In terms of profit earned, it makes no difference whether Lexus lowers its price or not; in either case it will make $280 million profit if BMW enters. D) No, because BMW will enter the market regardless of Lexus' decision about its price.