Recall the Application about the impact inflation has on your potential future salary and the repayment of student loans to answer the following question(s).According to this Application, if you earn a salary of $80,000 in the first year and all prices (including your salary)decrease by half in the next 5 years, what will your nominal annual salary be in 5 years?
A. $8,000
B. $10,000
C. $20,000
D. $40,000
Answer: D
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The owner of a sole proprietorship has limited liability, while stockholders of corporations have unlimited liability
a. True b. False Indicate whether the statement is true or false
Refer to Figure 35.5. S1 represents the U.S. domestic supply of a good and S2 represents supply in the United States under conditions of free trade. If the United States imposes a tariff on this good, what will happen to the quantity imported?
A. Imports will decline as price increases and domestic production decreases. B. Imports will increase because producers will pass the cost of the tariff on to consumers. C. Imports will decline as price increases and domestic production increases. D. Imports will increase as price increases and domestic production increases.
Consider two restaurants located next door to each other: Quick Burger and The Sunshine Café. If Quick Burger opens a drive-through window, the increased traffic and noise will bother customers seated outside at The Sunshine Café. The table below shows the monthly payoffs to Quick Burger and The Sunshine Café when Quick Burger does and does not operate a drive-through window. Quick Burger Operates aDrive-Through WindowQuick Burger Does NotOperate Drive-Through WindowQuick Burger$24,000$15,000The Sunshine Café$11,000$23,000If Quick Burger has the legal right to operate a drive-through, and Quick Burger and The Sunshine Café can negotiate with each other at no cost, then will Quick Burger operate a drive-through window?
A. Yes, because Quick Burger's payoff is higher when it operates a drive-through. B. No, because it is not socially efficient to operate a drive-through. C. No, because it would lower the payoff for The Sunshine Café. D. It cannot be determined.
Resources are efficiently allocated when production occurs at that output level where price:
A. is greater than marginal revenue. B. equals marginal revenue. C. is equal to average variable cost. D. equals marginal cost.