What is the role of prices in a market economy?

a

Indicating the cost of a good.

b

Indicating how valuable a good is.

c

Indicating the profit that a supplier will receive.

d

None of the above.

Foreign companies may establish plants in the United States to avoid import duties imposed on products entering the United States from their home countries. True or false?

To reverse a downward trend in sales, Mazda introduced its MPV minivan. Mazda positioned its van as a cross between a standard minivan and a sport utility vehicle.

Which of the following statements best describes a valuation allowance as it relates to accounting for income taxes? A. A valuation allowance is a contra account to deferred tax assets onlyB.

Consider the following statements when answering this question: I. If a firm employs only one variable factor of production, labor, and the marginal product of labor is constant, then the marginal costs of production are constant too. II.

Manx Corporation transfers 40% of its stock and $50,000 in cash to Somali Corporation for $500,000 of assets and all $200,000 of its liabilities.

One way that governments can improve market outcomes is to ensure that individuals are able to own and exercise control over their scarce resources.

Mike gets angry because Ben made a better grade on a test than he did. They get into an argument, and Mike takes a swing at Ben intending to hit him. Ben shoves Mike in order to avoid the blow.

A company facing an interest rate of 8% must choose among projects offering the following four-year cash flows.

Natalie has an easement to drive across Donald's road. Which of the following circumstances would terminate this easement? A. Sale of Natalie's propertyB. Sale of Donald's propertyC. Revocation of the easement by DonaldD.

In a basic AD-AS model, if the economy is at the equilibrium on the far left of the potential real output level, then a contractionary monetary policy will