Jim's Nursery produces and sells $1100 worth of flowers. Jim uses no intermediate inputs. He pays his workers $700 in wages, pays $100 in taxes and pays $200 in interest on a loan. Jim's profit is
A) $100.
B) $200.
C) $400.
D) $800.
A
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The above table has the total product schedule for Joe's Barber Shop. Joe charges $6 per haircut. If the wage rate is $24 per worker, what quantity of labor will maximize profits?
A) 1 worker B) 2 workers C) 4 workers D) 5 workers
Which of these is a likely consequence of an increase in the price level in the economy, other things constant?
a. Firms demanding less imported raw materials b. Government demanding less military hardware c. Foreigners demanding greater amount of U.S. goods d. Households demanding more housing and furniture e. Firms demanding more capital resources
Which of the following is true of the Fed? a. The law lets the Fed decide how best to promote full employment and output in the U.S. economy. b. It relies heavily on Congressional appropriations
c. The president sits on the Board of Governors. d. Congress must approve any new monetary policy. e. The president must approve any new monetary policy.
One outcome of the creation of the Federal Deposit Insurance Corporation was the reduction of moral hazard problems
Indicate whether the statement is true or false