Helga owns Viking, Inc, started with her $100,000 inheritance. Helga's accountant informs her that her firm earned a profit of $100,000 last year, and that if she chooses to invest the money she can expect a 10% return. If Helga did not run Viking, she would not work. What were Helga's economic profits last year?
a. Zero
b. $100,000
c. $90,000
d. $95,000
c
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If the automobile workers' union successfully negotiates a wage increase for its members, how does the wage hike affect the supply of automobiles?
A) The supply increases. B) The supply decreases. C) The quantity supplied increases. D) The quantity supplied decreases. E) Both answers B and D are correct.
In a long-run equilibrium, a perfectly competitive firm's average total cost is
A) minimized. B) maximized. C) zero. D) equal to average fixed cost.
A country has $20 billion of domestic investment and net capital outflow of $10 billion. What is saving?
a. $10 billion b. $30 billion c. -$20 billion d. -$30 billion
Each C + I + G + (X ? IM) expenditure schedule is drawn assuming a specific
A. income level. B. spending level. C. production level. D. price level.