Refer to the above table. This firm operates in a perfectly competitive market in which the market price is $10/unit. What is TRUE when the firm produces 103 units?
A. Marginal revenue is less than marginal cost.
B. Total costs exceed total revenue by $403.
C. Total revenue equals $5,060.
D. Its total profit is $524.
Answer: D
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Tommy's Teddy Bears incurs $300,000 per year in explicit costs and $50,000 in implicit costs. The shop earns $600,000 in revenues and has $1.1 million in net worth. Based on this information, what is accounting profit for Tommy's Teddy Bears?
A) $250,000 B) $300,000 C) $500,000 D) $1.35 million
An active deficit:
a. Is the portion of the government deficit that automatically helps a nation from falling further into a recession. b. Is always less than the actual deficit when a nation is currently below full employment. c. Is the difference between government spending and taxes at full employment. d. All of the above are true. e. None of the above is true.
Refer to the above figure. How do you describe what is happening as the economy moves from point A to point C?
A. Resources are becoming unemployed. B. Land that was once used to graze sheep is now being used to grow wheat. C. The economy has acquired new resources that are well suited for producing bread. D. The technology for growing wheat has improved.
When the general price level rises
A. consumption increases as a result of the multiplier effect. B. investment rises as a result of the real wealth effect. C. investment rises as a result of the multiplier effect. D. consumption falls as a result of the real wealth effect.