Which of the following examples would most likely lead to significant social, political, and economic problems?
a. levying a 15 percent luxury tax on an industry where consumers have few options
b. levying a 15 percent luxury tax on an industry where consumers have many options
c. levying a 5 percent sales tax on an industry where producers have many options
d. levying a 5 percent sales tax on an industry where producers have few options
b. levying a 15 percent luxury tax on an industry where consumers have many options
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If the national incomes of our trading partners increase, then our aggregate demand ________.
A. decreases because consumption decreases B. increases because net exports increase C. decreases because net exports decrease D. increases because consumption increases
Why should a perfect competitor produce at which price equals marginal cost?
What will be an ideal response?
Suppose that the demand curve for wheat is downward sloping and the price per bushel increases from $4.50 to $5.50. We would expect:
a. The demand for wheat to increase b. The quantity demanded of wheat to decrease c. The quantity demanded of wheat to increase d. Producers to reduce the number of bushels produced
Related to the Economics in Practice on p. 6: The opportunity cost to Apple of having the hard drive produced in Japan by Toshiba is
A. the wages paid to Japanese workers. B. the value-added captured by Apple in the United States. C. the components of the hard drive which are not produced by Toshiba. D. having the hard drive produced by the next best available company.