Luigi owns and operates a small restaurant. The income he receives from the restaurant is classified as
a. saving
b. proprietor's income
c. wages and salaries
d. rental income
e. dividends
B
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Suppose we live in an exchange economy with two goods. Together, we own 300 of good 1 and 300 of good 2. My tastes are captured by the utility function 
and yours are captured by the utility function 
.
a. Calculate the portion of the contract curve that lies in the interior of the Edgeworth Box.
b. Can you make intuitive sense of your answer?
What will be an ideal response?
The terms of trade are
A) the terms negotiated in a trade agreement. B) exports plus imports divided by GDP. C) the value of the real exchange rate. D) taxes plus transaction costs paid on imports. E) the ratio of export prices to import prices.
If a monopolist produces to a point at which marginal revenue is more than marginal cost then
A) the firm should increase output. B) the firm should reduce output. C) the firm is maximizing profits. D) we do not know if the firm should increase or reduce without more information.
The sum of the ________ flows is equal to the cost of the goods and services at their final use.
Fill in the blank(s) with correct word