If the producer of an information product engages in marginal cost pricing, it earns
A. zero economic profits.
B. negative economic profits.
C. positive economic profits.
D. a normal profit.
Answer: B
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The United States is less dependent on trade than most other countries because
A) the United States is a relatively large country with diverse resources. B) the United States is a "Superpower." C) the military power of the United States makes it less dependent on anything. D) the United States invests in many other countries. E) many countries invest in the United States.
Social Security taxes are
A) progressive because all workers pay the tax. B) regressive because higher income workers pay taxes on a smaller percentage of their income. C) proportional because everyone is charged the same percentage tax rate. D) regressive because higher income workers don't pay the tax.
What is a shortcoming of price control legislation?
a. Price controls create surpluses. b. Price controls lower the quantity demanded. c. Price controls create shortages. d. All of the above are shortcomings of price controls.
An insurance company offering discounts to students with high grades in school an example of:
A. statistical discrimination. B. building a reputation. C. signaling. D. screening.