Bank interest rates on short-term business loans during the late 1970s
A. had an upward trend.
B. had a downward trend.
C. stayed about the same.
A. had an upward trend.
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Use the following graph for a competitive market to answer the question below.
Assume the government imposes a $2.25 tax on suppliers, which results in a shift of the supply curve from S1 to S2. How much of the total tax revenue is paid by the buyer?
A. $675 B. $375 C. $750 D. $300
A drought in the Midwest will raise the price of wheat because of a
A) leftward shift in the supply curve. B) rightward shift in the supply curve. C) leftward shift in the demand curve. D) rightward shift in the demand curve.
Differences in the productivity of labor account for comparative advantage if:
a. the minimum wage varies across the countries. b. the size of the domestic market varies across the countries. c. different countries have differences in labor hours required to produce each good. d. the strength of workforce varies across countries. e. the laborers are paid different wages in different countries.
Mr. Capps recently built a dental floss factory in Montana. It cost $500,000 and is expected to last ten years. The plant can only be used to produce dental floss and will have no scrap value. When a recession occurs, the yearly revenue from the plant declines to $35,000 . compared to costs of $25,000 just for the variable resources required to produce the current rate of output. Mr. Capps should
a. shut down since he is experiencing economic losses (in other words, he will not get his $500,000 back). b. reduce the price of dental floss if his demand is inelastic in order to increase his revenue. c. raise the price of dental floss if his demand is elastic in order to increase his revenue. d. continue to operate since he is covering his variable costs and the cost of the plant is a sunk cost.