You use $5,000 of your own money to start a dog-walking business. During the first year you earn a 6% return on your investment. If the current interest rate is 8%, you earn an economic profit of
A. -$60.
B. -$100.
C. $200.
D. $300.
Answer: B
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The marginal product of labor (measured in units of output) for Expando Corp is given by MPN = A(400 - N)
where A measures productivity and N is the number of labor hours used in production. Suppose the price of output is $3 per unit and A = 2.0. What will be the demand for labor if the nominal wage is $18? A) 57 B) 107 C) 197 D) 397
Which of the following would be entered as a credit in the financial account of the United States?
a. Purchase of U.S. Treasury bonds by Americans b. Purchase of U.S. Treasury bonds by foreigners c. Purchase of U.S. made cars by foreigners d. Income earned by the U.S. from tourism e. Purchase of foreign stocks by U.S. investors
Which of the following will limit the money creation process to an amount less than the potential amount?
a. bank pursuit of profits b. increase in currency holdings by the public c. business demand for loans d. increased use of credit cards
Distinguishing among money, income, and wealth
A. A person's money is the currency held and the checking account balance, income is the earning and wealth is equal to the value of assets minus all debts B. A person's money is the currency held and the earnings from work, income is equal to the bank balance and wealth is equal to the profit from investment C. A person's money is the currency in the pocket, income is the earning and wealth is equal to asset value