Refer to the information below. The explicit costs of Harvey's firm in the first year were:
Harvey quit his job at State University where he earned $45,000 a year. He figures his entrepreneurial talent or foregone entrepreneurial income to be $5,000 a year. To start the business, he cashed in $100,000 in bonds that earned 10 percent interest annually to buy a software company, Extreme Gaming. In the first year, the firm sold 11,000 units of software at $75 for each unit. Of the $75 per unit, $55 goes for the costs of production, packaging, marketing, employee wages and benefits, and rent on a building.
A. $150,000
B. $605,000
C. $655,000
D. $825,000
B. $605,000
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Refer to Figure 28-2. Suppose the Fed used contractionary policy to push short-run equilibrium to point C. If the short-run equilibrium remained at point C long enough
A) the short-run Phillips curve would shift up. B) the economy would stay at point C in the long run. C) the economy would move back to point A. D) the short-run Phillips curve would shift down.
To counter parents' concerns about fast foods and childhood obesity, McDonalds considered:
A) a variety of menu items such as milk shakes and candy. B) a variety of menu items such as apple slices, fruit juices, peanut butter and jelly sandwiches, and carrot sticks. C) not changing the menu. D) all of the above.
What role does a company like J.D. Power (which provides product satisfaction reviews) serve?
A) It provides a screening test. B) It provides a signal of quality. C) It reduces moral hazard. D) It reduces costs of giving surveys.
Fundamentally, fiscal policy deals with which of the following?
A. changes in the federal budget B. changes in M1 C. changes in interest rates