A firm has just ended its calendar year making a sale in the amount of $150,000 of merchandise purchased during the year at a total cost of $112,500. Although the firm paid in f for the merchandise during the year, it has yet to collect at year end from the customer. The n profit and cash flow from this sale for the year are
A) $0 and $150,000, respectively.
B) $37,500 and -$150,000, respectively.
C) $37,500 and -$112,500, respectively.
D) $150,000 and $112,500, respectively.
C) $37,500 and -$112,500, respectively.
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Higher price elasticity of demand means that a consumer's demand is:
A) more responsive to price changes. B) less responsive to price changes. C) less responsive to income changes. D) more responsive to income changes.
Which of the following is the source of revenue for Medicare and Social Security in the United States?
A) individual income taxes B) social insurance taxes C) sales taxes D) property taxes
Suppose you have a limited money income and you are purchasing products A and B, whose prices happen to be the same. To maximize your utility, you should purchase A and B in such amounts that:
A. their marginal utilities are the same. B. their total utilities are the same. C. their marginal and total utilities are proportionate. D. the income and substitution effects associated with each are equal.
Speculators play an important role in a system of floating exchange rates because
A. to make a profit, they must buy a currency when its value is low and sell it when its value is high. B. their purchases and sales lead to wild gyrations in exchange rates and thus increase instability. C. they place additional risks on businesses that need to purchase and sell foreign currency. D. All of the above are correct.