According to the table, the price of Big Macs converted to U.S. dollars varies widely around the world. This shows that Big Macs do NOT follow the
A) law of opportunity cost. B) law of one price.
C) law of demand. D) law of exchange rate parity.
B
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Which of the following statements would appeal to someone who favors an expanded public sector as the basis of expansionary fiscal policy?
A. “The government isn’t the solution; it’s the problem.” B. “The government that governs least governs best.” C. “The American people want national defense; they want laws to be enforced; they want federal support for education and environmental protection, and they want transfer payments for the elderly and unemployed.” D. “If you ever got anything good out of the government you can be sure that some rich so-and-so got more.”
In the 1970s, the government placed price ceilings on gasoline prices. A shortage of gasoline occurred, and long lines formed at the pumps. Some gas stations required that in addition to paying the price on the pump you had to buy a blank will
The action of having to purchase the will in order to purchase gas is known as A) a surplus. B) a price support. C) the price system. D) a black market.
If the U.S. Gini coefficient increased from 0.4 in 1970 to 0.6 in 1990, what would be most accurate?
a. Income inequality increased in the U.S b. Per capita income increased in the U.S c. Both income inequality and per capita income increased d. Income inequality decreased e. The growth rate of income increased
A firm hires labor, capital, and land to produce grapefruits. Currently the marginal product of the last unit of labor input is 40, the marginal product of the last unit of capital input is 60, and the marginal product of the last unit of land input is 200. The market wage is $20 and the market price for capital is $30. If the firm is using the optimal combination of inputs, then the price of land is
A. $4. B. $40. C. $100. D. indeterminate from the given information.