On January 1, Rick's Photo owned $50,000 of equipment. During the year, the value of the equipment fell by $10,000, plus Rick bought $25,000 in new equipment. Rick's company experienced
A) an increase of net investment of $35,000.
B) $40,000 of depreciation.
C) $10,000 of depreciation.
D) a change in total financial capital of $15,000.
E) an increase of new capital by $10,000.
C
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Suppose a monopolist sells 10,000 units of output at $22 per unit. The firm's total revenue is
A) $2,200. B) $22,000. C) $220,000. D) $2,200,000.
According to William Niskanen's model of bureaucracy, Congress tends to approve a bureau's budget at a level where
a. the marginal value of the last unit of the bureau's output is greater than the marginal cost. b. the marginal cost of the last unit of the bureau's output is greater than the marginal value. c. the marginal value of the last unit of the bureau's output equals the marginal cost. d. the marginal cost of the last unit of the bureau's output is zero.
Suppose the money demand curve shifts rightward. Which of the following is true about the alternative policy options available with the Fed? a. The Fed can keep the interest rate from rising only if it increases the money supply
b. The Fed cannot prevent the interest rate from rising. c. The Fed can prevent the interest rate from rising without changing the money supply. d. If the Fed expands the money supply, the interest rate will rise even further. e. The Fed should reduce the money supply if it plans to prevent the interest rate from rising.
When the Fed buys a Treasury bill from the public, how does it usually pay for the T-bill?
a. by writing a check on a commercial bank account b. by printing new Federal Reserve notes c. by creating new reserves in bank accounts d. by prepaying taxes into the Treasury's account