The import of Apple iPads assembled in Shanghai at a $295 wholesale price ($213 cost and $82 profit margin) adds more than it should to the U.S. trade deficit with China because
a. Chinese assembly labor represents only 47 % of the wholesale cost
b. the iPad's popularity has triggered an enormous number of unit sales
c. wholesale prices only count in the trade statistics if final product prices are higher
d. as with foreign-assembled minivans, most of the subassembly components come from the U.S.
e. the Chinese yuan is a managed currency
d
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The above figure plots income and consumption in a nation. In 2007
A) consumption was equal to $25,000 and income was equal to $28,000. B) consumption was equal to $28,000 and income was equal to $25,000. C) consumption was equal to $25,000 and income was equal to $25,000. D) consumption was equal to $27,000 and income was equal to $31,000.
Adam Smith noted that when public expenditures are undertake for the general benefit of everyone in a society then _____
a. there is considerable conflict between the benefit principle and the ability-to-pay principle b. there is no conflict between the benefit principle and the ability-to-pay principle c. the benefit principle provides little guide to tax policy d. the ability-to-pay principle provides little guide to tax policy