Julia prepares tax returns and does bookkeeping. Last year her revenues from the tax and bookkeeping business were $150,000 . and her expenses for the business were $15,000 . When she started her tax and bookkeeping business, Julia gave up her supplemental job doing in-home pet sitting. She used to earn $10,000 per year from pet sitting. Assume that she incurred no costs for her pet sitting
business. Julia's explicit costs are
a. 0.
b. $10,000.
c. $15,000.
d. $25,000.
c
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For each of the following transactions, explain what happens to the merchandise trade balance, current account balance, and financial account balance in both the United States and Mexico. The exchange rate is 2 Mexican pesos per U.S. dollar
(a) A Mexican firm spends 4 million pesos to buy radiology equipment from a U.S. firm. (b) A U.S. firm buys 20,000 sombreros at 20 pesos each. (c) Mexican computer firms send 200 programmers to universities in the United States, paying tuition and expenses of $3000 each. (d) A Mexican entrepreneur gives 50,000 pesos to the United Way of San Antonio, Texas. (e) Mexican investors buy $10 million worth of 30-year U.S. Treasury bonds.
The notion that "no man produces but with a view to consume or sell,"
A. sums up Say's Law. B. can be restated as "supply creates it own demand". C. was said by David Ricardo, elaborating on Say's Law. D. All of the choices are correct.
As you move down the production possibility frontier, the absolute value of the marginal rate of transformation
A. increases. B. initially decreases, then increases. C. decreases. D. initially increases, then decreases.
Answer the following statement(s) true (T) or false (F)
1. The Good Samaritan Rule dictates that if a person witnesses a crime, they must assist the person against whom the crime is being committed. 2. It is always best to be the strong pig in Pigs in a Box. 3. For a Nash equilibrium to exist, at least one player must have a dominant strategy. 4. An outcome is not a Nash equilibrium if either player would be better off with a different strategy. 5. A player has a dominant strategy when there is one strategy the player would want to follow regardless of the other player's behavior.