Agave, Six Feet Under, Globe, Silk, Sotto Sotto and Zocalo are all restaurants in Atlanta. In the short run, Globe could
I. make an economic profit.
II. make zero economic profit.
III. incur an economic loss.
A) Only I
B) Only II
C) I, II, and III
D) Only I and II
C
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If the ABC Company decides to take over the XYZ Corporation by purchasing all of the stock of XYZ, what does this tell us about the view ABC holds of XYZ?
Exhibit 11-10 GDP data (billions of dollars) Indirect business taxes$ 600 Depreciation950 Change in business inventories50 Compensation of employees5,400 Corporate profits700 Durable goods600 Exports100 Social Security taxes360 Transfer payments300 Fixed investment950 Government spending800 Imports150 Net interest500 Nondurable goods2,000 Personal taxes1,000 Rental income200 Services4,000 In Exhibit 11-10, and using the expenditures approach, compute net exports (X-M). Which of the following is correct?
A. $500 billion. B. $150 billion. C. $100 billion. D. -$50 billion.