If you have $10,000 to start a lawn-cutting business, the interest rate is 4 percent, your cost of equipment is $3,000, and the earnings you sacrifice from working at another job are $32,000, your yearly cost of doing business would be
A) $13,000. B) $13,400. C) $35,400. D) $45,000.
C
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Consumers lose when a market is served by a monopolist to the extent that units of output for which the price consumers are willing to pay exceeds the marginal costs of production are not produced
Indicate whether the statement is true or false
Refer to the above diagram. A binding government-set price ceiling is best illustrated by:
A. price B. B. price A. C. quantity E. D. price C.
The North American Free Trade Agreement (NAFTA):
A. resulted from GATT negotiations at the Uruguay Round. B. established a free trade zone encompassing Canada, Mexico, and the United States. C. is also known as the Reciprocal Trade Act. D. permits the former republics of the Soviet Union to export goods duty free to North America.
The rational expectations view that expectations regarding policy and its effects are important to consider:
A. Serves as the primary rationale for the Laffer Curve B. Is now accepted by most mainstream economists C. Is consistent with the monetary rule calling for a constant rate of growth in the money supply D. Is challenged by research indicating that expectations have little economic effect