Suppose a roll of paper towels costs $4 at Sam's Quick Stop, a local quick stop, and the same roll of paper towels costs $1 at Big Supplies, a large, retailer located in a more remote location. If a customer's total cost of travel to Sam's Quick Stop is $2 and is $5 to Big Supplies, which of the following is true?
A) It is cheaper for the consumer to buy the paper towels at Sam's Quick Stop.
B) It is more expensive for the consumer to buy the paper towels at Big Supplies.
C) It is cheaper for the consumer to buy the paper towels at Big Supplies.
D) The consumer is indifferent as to where they buy the paper towels.
D) The consumer is indifferent as to where they buy the paper towels.
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In order to study labor markets more easily, we make which of the following assumptions about firms? (i) Firms sell their products in competitive markets. (ii) Firms buy their inputs in competitive markets. (iii) Firms maximize profits. (iv) Firms maximize revenues
a. (iii) only b. (i) and (iii) only c. (i), (ii), and (iii) only d. (i), (ii), (iii), and (iv)
Suppose that goods A and B are close substitutes. If the price of good A falls, then we would expect an:
A. Increase in the demand for A and an increase in the quantity of B demanded B. Increase in the demand for A and a decrease in the quantity of B demanded C. Increase in the quantity of A demanded and a decrease in the demand for B D. Increase in the demand for good A as well as for good B
In the United States between 1980 and 2000, employment:
A. grew more rapidly than the over-sixteen population. B. decreased, while the over-sixteen population increased. C. grew at approximately the same rate as the over-sixteen population. D. was constant, while the over-sixteen population increased.
In general we may note that inflation:
A. always increases purchasing power. B. should try to be avoided at all costs. C. doesn't necessarily harm purchasing power. D. always decreases purchasing power.