Suppose a firm has an annual budget of $200,000 in wages and salaries, $75,000 in materials, $30,000 in new equipment, $20,000 in rented property, and $35,000 in interest costs on capital. The owner/manager does not choose to pay himself, but he could receive income of $90,000 by working elsewhere. The firm earns revenues of $360,000 per year. What is the accounting profit for the firm described above?
A. $0.
B. -$90,000.
C. $200,000.
D. $90,000.
Answer: A
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If the inflation rate is negative, the price level in an economy is
A) falling. B) rising slowly. C) constant. D) rising rapidly.
Between 1947 and 2011,
A) Exports decreased and imports decreased. B) Exports and imports increased. C) The current account surplus rose. D) The current account deficit fell.
The following linear demand specification is estimated for Conlan Enterprises, a price-setting firm:Q = a + bP +cM +dPRwhere Q is the quantity demanded of the product Conlan Enterprises sells, P is the price of that product, M is income, and PR is the price of a related product. The results of the estimation are presented below:
Given the above, at the 1% level of significance, the critical value of the t-statistic used by Conlan to test for statistical significance has ________ degrees of freedom and is equal to ________.
A. 32; 36.14 B. 30; 2.750 C. 32; 4.57 D. 32; 0.7984 E. 28; 2.763
Falling output, in the short run, could be due to:
A. an increase in short-run aggregate supply. B. a reduction in aggregate demand. C. an increase in long-run aggregate supply. D. an increase in aggregate demand.