The following table contains the actual prices charged by four Web sites for the PlayStation 4 game Call of Duty; Black Ops III in November 2015
Target $59.99
Walmart 59.00
Best Buy 59.99
GameStop 59.99
Explain whether the information in this table contradicts the law of one price.
The data in the table does not seem to contradict the law of one price, since the price of this game at Walmart is very close to the price at Best Buy, GameStop, and Target (only $0.99 less).
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Use of the principle of comparative advantage involves
a. specialization only. b. exchange only. c. both specialization and exchange. d. money only.
Suppose the Congress and president decreased the maximum annual contributions limits to retirement accounts and at the same time reduced the budget deficit. What would happen to the interest rate?
a. It would decrease. b. It would increase. c. It would stay the same. d. It might do any of the above.
If autonomous consumption rises by $60 and, as a result, Real GDP rises by $240, then the marginal propensity to consume is
A) 0.25. B) 0.75. C) 0.05. D) 0.95. E) none of the above
An increase in income will cause
A) a reduction in the supply of central bank money. B) a reduction in the demand for currency. C) an increase in the demand for reserves. D) none of the above