What information is provided by a demand curve? What variables are measured along the axes of the graph?
What will be an ideal response?
The demand curve is a graphical representation of a demand schedule. The price per unit is measured along the vertical axis and the number of units per period of time is measured along the horizontal axis. The units of the good are identical so that quality is held constant. The price is the relative price, so all other prices are held constant. The demand curve pictures the relationship between relative price and the quantity purchased.
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Which of the following best describes comparative advantage?
A) using the fewest number of resources to produce a given amount of output B) being able to produce more output than any other country C) having the largest number of resources compared to other countries D) forgoing the fewest units of one product to produce a unit of another product E) It is the same as absolute advantage.
If a tax rate falls as a person's income rises, the tax is a
a. proportional tax b. progressive tax c. regressive tax d. a poll tax e. a head tax
Explain how a large number of firms in the industry and product heterogeneity affect the likelihood of cartel success.
What will be an ideal response?
Suppose that on Monday, a Big Mac cost $3.00 in the United States and 310 Japanese yen in Japan. On Monday, the exchange rate was $1 = 85 yen. According to the purchasing power parity theory, the yen was __________ by approximately __________ percent
A) overvalued; 22 B) undervalued; 40 C) overvalued; 29 D) undervalued; 22 E) overvalued; 18