Which of the following is an example of a good with an inelastic supply?
a) beanbags
b) toothbrushes
c) apples
d) hats
Ans: c) apples
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The above figure shows a firm in monopolistic competition. At the profit maximizing level of output
A) the firm is making a positive economic profit. B) the firm incurs an economic loss. C) the firm is making zero economic profit. D) this firm would choose to shut down in the short run.
Profits earned by subsidiary are taxed even if it is not repatriated to the parent company as dividends because they are considered as income for the parent company.
A. True B. False C. Uncertain
If the balance of the current account in the United States is -$900 billion, which of the following is most likely to be true?
A) The balance on the financial account is positive. B) Net foreign investment is positive. C) The trade balance is positive. D) The balance on the capital account is negative.
Keynes' theory of consumption predicts that the aggregate saving rate
A) increases as society becomes richer. B) falls as society becomes richer. C) is constant in the long-run. D) falls with higher incomes in a cross-section of income.