The "ceteris paribus" clause in the law of demand allows which of the following factors to change?
A. consumer tastes and preferences
B. prices of other goods
C. expectations
D. price of the good demanded
Answer: D
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Institutional reversal refers to the fact that:
A) the same institutions that were highly inclusive in the year 1500 slowly changed into extractive institutions as a result of modernization. B) Europeans established more extractive institutions in places that were previously more developed, and set up more inclusive institutions that were previously less developed. C) Europeans established more extractive institutions in places that were previously less developed, and set up more inclusive institutions that were previously more developed. D) the same institutions that were highly extractive in the year 1500 slowly changed into inclusive institutions as a result of modernization.
Professor Rush decides to quit teaching economics and opens a shoe store out at the mall. He gave up an annual income of $50,000 to open the store. A year after opening the shoe store, the total revenue for the year was $200,000
Rush's expenses were $30,000 for labor, rent was $18,000, and utilities were $1,200. He also had to purchase new shoes from manufacturers, at a cost of $60,000, which was financed by cashing in his savings of $60,000 that had been in a bank earning 8 percent per year. The normal profit from operating a shoe store in the mall is $20,000. Determine Professor Rush's total cost and economic profit.
The principle of opportunity cost is that
A) the economic cost of using a factor of production is the alternative use of that factor that is given up. B) taking advantage of investment opportunities involves costs. C) the cost of production varies depending on the opportunity for technological application. D) in a market economy, taking advantage of profitable opportunities involves some money cost.
The concept of absolute poverty states that anyone who falls too far behind the average income should be considered poor
a. True b. False Indicate whether the statement is true or false