As a waiter you earn $60,000 per year, including tips. Someone offers you a new job as an economic consultant, which pays $100,000 per year. In order to be a consultant, you'll need to rent an office and purchase supplies and new computer equipment. We can conclude which of the following?
a. If the explicit cost for the consulting job is $30,000 per year, your accounting profit is equal to $30,000.
b. If the explicit cost for the consulting job is $25,000 per year, your economic profit is equal to $15,000.
c. If the explicit cost for the consulting job is $20,000 per year, your economic profit is equal to $80,000.
d. If the explicit cost for the consulting job is $20,000 per year, your accounting profit is equal to $140,000.
b. If the explicit cost for the consulting job is $25,000 per year, your economic profit is equal to $15,000.
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In the "Prisoners' Dilemma" game, an individual player is best off if: a. both prisoners confess
b. neither prisoner confesses. c. she confesses and the other prisoner does not. d. the other prisoner confesses, while she does not.
Fiscal policy deals with
a. interest rates. b. the money supply. c. the government budget. d. bank credit.
A former senator remarked that "We cannot give anyone the option of polluting for a fee.". Do most economists agree with this statement, or do they disagree with it?
Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C