Your electrician accepts payment only in cash in order to avoid taxes. If you pay him $100, ________
A) the GDP of your country will increase
B) the GDP of your country will remain unchanged
C) the trade surplus of your country will increase
D) the GDP of your country will fall
B
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Bud opened a flower shop. He rented a building for $9,000 a year. To buy equipment for the store, he withdrew $10,000 from his savings account, which earned an annual interest rate of 3 percent
During the first year of operation, Bud paid $4,000 for utilities and $12,000 to his suppliers. The store's total annual revenue was $55,000. The market value of the store's equipment at the end of the year was $8,000. If Bud had not started this business, he would have continued to work as an employee at another flower shop for $30,000 a year. During the first year of operation, Bud A) received an economic profit of $30,000. B) received an economic profit of $20,000. C) incurred an economic loss of $2,300 D) incurred an economic loss of $12,300
“Optimal input curve analysis is useless. Since firms never know the demand for their product with certainty, they will rarely operate at the optimal input combination.” Agree or disagree?
What will be an ideal response?
According to the graph shown, if the economy is operating in autarky and decides to open trade with a tariff, the impact on domestic demand is they will:
This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
A. decrease consumption from 1500 to 1150.
B. increase consumption from 815 to 1500.
C. increase consumption from 815 to 1150.
D. decrease consumption from 1500 to 815.
The largest overall recipients of remittances are:
A. Chile and Mexico, which each get more than $50 billion per year. B. China and India, which each get more than $5 billion per year. C. China and India, which each get more than $50 billion per year. D. Chile and Mexico, which each get more than $5 billion per year.