A firm's economic profits are given by:
a. total revenue minus total accounting cost.
b. the owner's opportunity cost.
c. total revenue minus total economic cost.
d. total revenue minus the cost of capital.
c
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The marginal propensity to consume (MPC) is the change in consumption divided by the change in saving
a. True b. False Indicate whether the statement is true or false
If banks are fully loaned out, have no excess reserves, and the legal reserve requirement is raised, the amount that banks can lend is
a. reduced and the money supply contracts b. reduced and the money supply expands c. reduced and there is no change in the money supply d. increased and the money supply expands e. increased and the money supply contracts
Discuss the differences between a tariff and a quota. Explain why quotas are considered to be a greater threat to competition than tariffs.
What will be an ideal response?
”I oppose a free trade agreement with Mexico because American workers will lose jobs to low-paid Mexican workers.” Explain whether you agree or disagree with this statement.
What will be an ideal response?