Comparing the cost of the same basket of goods in different locations:
A. can be used for international price comparisons.
B. can create a price index to evaluate purchasing power across different locations.
C. is based on the theory of purchasing power parity.
D. All of these statements are true.
Answer: D
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Any price ______ will cause the firm to shut down production.
A. below the minimum of MC B. above the maximum of AC C. below the minimum of AC D. between MC and AC
A situation in which there is a reduction in quantity supplied to zero when there is the slightest decrease in price is
A) perfectly elastic supply. B) perfectly elastic demand. C) perfectly inelastic supply. D) perfectly inelastic demand.
A common unscrupulous financial practice of railroad promoters (and the basis of the Credit Mobilier scandal) involved
a. federal tax evasion. b. "insider" ownership of railroad construction companies. c. sales of worthless railroad bonds to unwitting buyers. d. insurance fraud.
To maintain the desired level of spending
What will be an ideal response?