If top managers make good decisions, the firm's profits will be ________, and the firms assets will be ________
A) high; small relative to its liabilities.
B) high; large relative to its liabilities.
C) equal to its revenues; small relative to its liabilities.
D) low; large relative to its liabilities
Answer: B
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The circular flow model with government included would show that government
A. produces goods and services and sells them in the product market to generate net taxes. B. obtains revenues in the product market and uses it to cover costs in the resource market. C. controls economic resources and sells them in the resource market. D. provides goods and services to businesses and households and pays for them with net taxes.
The ability of one person or nation to produce a good at a lower absolute cost than another is called a(n)
A) comparative advantage. B) specialization advantage. C) market advantage. D) absolute advantage.
Dane has a car valued at $20,000 that gives him a utility of 80. There is a 5 percent chance that he will have an accident that will make his car worthless, in which case his utility will be zero. His utility from a wealth of $15,000 is 76
The maximum amount Dane will be willing to pay for insurance is A) $1,000. B) $3,000. C) $5,000. D) $15,000.
Suppose that prices in the United States rise relative to prices in Japan. We expect that
A) the dollar will appreciate and the yen will depreciate. B) the dollar will depreciate and the yen will appreciate. C) both the dollar and the yen will appreciate. D) both the dollar and the yen will depreciate.