Your business has these annual costs: rent, $30,000; raw materials, $50,000; insurance, $5,000; sales commissions, $25,000. Your total revenue is $100,000. What will you do in (a) the short run? (b) the long run?
What will be an ideal response?
(a) operate; (b) go out of business
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Refer to the above figure. At a price of $2 per gallon, there is
A) a surplus of 20,000 gallons per month. B) a shortage of 40,000 gallons per month. C) a shortage of 80,000 gallons per month. D) a shortage of 60,000 gallons per month.
In the balance of payments, if there are no statistical errors or discrepancies, which of the following is TRUE of the sum of the capital account balance, the current account balance, and the official reserve transactions account balance?
A) This sum is either positive or negative, depending on whether the sum of all surplus and deficit items associated with cross-border transactions is positive or negative. B) This sum must always be zero, because the sum of all surplus and deficit items associated with cross-border transactions must equal zero. C) This sum is positive only if the U.S. government operates with a budget surplus. D) This sum is positive only if the U.S. government operates with a budget deficit.
The Federal Reserve's principal tool in the manipulation of aggregate demand is the personal income tax
a. True b. False Indicate whether the statement is true or false
Oligopolies produce more when they collude then when they do not
a. True b. False Indicate whether the statement is true or false