When economists say entrepreneurs have a comparative advantage in arbitrage activity, they are saying
A) entrepreneurs are efficient at selling their products below cost.
B) entrepreneurs are efficient at selling their products at cost.
C) entrepreneurs are efficient at discovering opportunities to buy goods low and sell them at higher prices.
D) entrepreneurs are efficient at resolving disputes of interest over titles to scarce property rights.
C
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As a result of an increase in the personal income tax rate, consumers are likely to
A) spend less. B) earn more money. C) save more. D) spend more.
"Higher ethanol production definitely and directly raises the price of corn," said USDA economist Ephraim Leibtag. In the short run in the corn market, what is TRUE if the production of ethanol increases?
A) The demand curve for individual corn farmers will shift upward. B) The price individual corn farmers receive will decrease. C) The total cost curve for individual corn farmers will shift upward. D) The marginal cost curve for individual corn farmers will shift downward.