Joanne rents out her apartment in Seattle to Alice as she is moving to Dallas for the next three years. Which of the following statements must be true?
a. Alice's valuation of the apartment is higher than Joanne's opportunity cost of renting it.
b. Joanne's valuation of the apartment is higher than Alice's.
c. This transaction creates no economic value for Alice.
d. Alice's valuation of the apartment is lower than Joanne's opportunity cost of renting it.
A
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In the long run a perfectly competitive firm operates ____ and a monopolistically competitive firm operates ____
a. at the efficient scale; with excess capacity b. at the efficient scale; at the efficient scale c. with excess capacity; with excess capacity d. with excess capacity; at the efficient scale
Which of the following sets of variables represent Injections into the Circular flow of Income?
(a) Investment, imports, savings and subsidies. (b) Savings, taxes, government expenditure and imports. (c) Government expenditure, taxes, exports and investment. (d) None of the above.
Table 5.1National Income Accounts (dollar figures are in billions)Expenditures for consumer goods and services$4,565Exports$740Government purchases of goods and services$1,465Social Security taxes$510Net investment$225Indirect business taxes$520Imports$825Gross investment$865Corporate income taxes$185Personal income taxes$750Corporate retained earnings$45Net foreign factor income$20Government transfer payments to households$690Net interest payments to households$0On the basis of Table 5.1, personal saving is
A. $6,445 billion. B. $5,790 billion. C. $5,620 billion. D. $6,530 billion.
Quotas are most often supported by
A) foreign producers. B) foreign consumers. C) domestic consumers. D) domestic producers.