When price is greater than marginal cost for a firm in a competitive market,
a. marginal cost must be falling.
b. the firm must be minimizing its losses.
c. there are opportunities to increase profit by increasing production.
d. the firm should decrease output to maximize profit.
c
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If macaroni and cheese is an inferior good, then a decrease in income will result in
A) an increase in the demand for macaroni and cheese. B) a decrease in the demand for macaroni and cheese. C) an increase in the supply of macaroni and cheese. D) a decrease in the supply of macaroni and cheese.
One reason for the success that firms have in getting the government to erect barriers to foreign competition is that jobs lost to foreign competition are easy to identify but jobs created by foreign trade are often hard to identify
Which of the following is a second reason? A) Firms that benefit from trade barriers have more money to lobby government officials to support the barriers than do firms that are harmed by trade barriers. B) The costs that tariffs and quotas impose on consumers are large in total but relatively small per person. C) The benefits from free trade are less than the costs. D) People who benefit from foreign trade tend not to vote in elections; people who are harmed by foreign trade are much more likely to vote.
In what way is corporate income subject to double taxation?
What will be an ideal response?
Those living in the poorest quartile of countries would like to emigrate because:
A. the opportunities to gain more education are higher in richer countries. B. earnings are higher for the same skill level in richer countries. C. the cost of living is lower in richer countries. D. All of these statements are true.