When Wal-Mart decides to build a new retail store in a town, it will decide to build a large store rather than a small store if the large store is expected to earn a greater economic profit
What other motive would Wal-Mart have for choosing to build a large store?
A) A larger store will help Wal-Mart maintain its position as the leading retail company in the world more than a smaller store would.
B) Because of economies of scale, the average total cost of production is less for a larger store than a smaller store.
C) A larger store will give Wal-Mart greater political influence in the community.
D) A larger store may deter entry into the town by a rival firm.
D
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For a given supply curve, how does the elasticity of demand affect the burden of a tax imposed on a product?
A) The excess burden of the tax will be greater when the demand is more elastic than when it is less elastic. B) The excess burden of the tax will be greater when the demand is less elastic than when it is more elastic. C) The excess burden of the tax will be minimized when the demand is unit elastic. D) The excess burden of the tax will be greater when the elasticity of supply is greater than the elasticity of demand.
An increase in the price of a particular bond implies an increase in the interest rate for that bond.
Answer the following statement true (T) or false (F)
Quantitative easing involved Fed purchases of long term securities rather than short term securities
a. True b. False Indicate whether the statement is true or false
From a consumer's viewpoint, which of the following policies would be least desirable?
A. Quotas on imported goods. B. Tariffs on imported goods. C. No trade. D. Free trade.