Suppose the supply of dollars increased from S1 to S2 in Figure 36.3. As a result of this change,
A. The Swiss franc will lose value worldwide.
B. A trade surplus will be created in Switzerland.
C. Swiss chocolate imports to the United States will be lower-priced.
D. U.S. computer exports to Switzerland will be lower-priced.
Answer: D
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The rate-of-return regulated public utility can have incentive to use more capital than is efficient relative to other inputs
Indicate whether the statement is true or false
Which of the following profit functions exhibits a linear production function?
A. ? = P × (3K + 4L) ? 20L ? 35K B. ? = P × (3K0.5 + 4L0.5)1/0.2 ? 20L ? 35K C. ? = P × min(2L, 5K) ? 20L ? 35K D. ? = P × K0.75L0.50 ? 20L ? 35K
Alyssa runs a "Dessert of the month" delivery service. To operate her business each year, she spends $30,000 on baking supplies (flour, sugar, etc.), $50,000 on rent for her shop, and $5,000 for utilities. She owns her delivery van, estimating that in alternate uses it could generate $15,000 in income per year. Alyssa has other funds tied up in the business that could earn her $2,000 per year in interest. Alyssa has been offered $50,000 to work full time at a competing bakery. Her bakery generates $160,000 per year in revenue from subscriptions to her monthly service.Based on the information above, which of the following is true about Alyssa's costs and profits?
A. Alyssa's implicit costs are $67,000 and her economic profits are $93,000. B. Alyssa's explicit costs are $85,000 and her accounting profits are $8,000. C. Alyssa's explicit costs are $67,000 and her implicit costs are $85,000. D. Alyssa's accounting profits are $75,000 and her economic profits are $8,000.
The capricious universe view indicates that:
A. in the long run, "acts of God" have contained population growth and thus contributed to economic development. B. DVCs will obtain biological and chemical weapons and force the redistribution of world wealth. C. there is little or no correlation between one's efforts and the rewards he or she receives. D. international and civil wars have been the primary impediment to growth.