Suppose Al, Betty, and Carl own the only fishing companies in your village. Suppose the market price today is $10 per fish. Suppose Al catches 4,000 fish with an average total cost of $7.50, Betty catches 6,000 fish with an average total cost of $6, and Carl catches 10,000 fish with an average total cost of $7 . How much would Betty's average total cost have to fall in order for her to make as
much total profit as Carl?
a. $1
b. $2
c. $4
d. $5
e. Betty cannot make as much profit as Carl with only 6,000 fish.
D
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The income approach measures GDP by summing
A) the wealth of households, business and government. B) the incomes paid households for the resources they own. C) the total production of all final goods and services produced in a year within a country's borders. D) C + I + G + NX. E) Both answers A and D are correct.
Explain why economies with financial account surpluses usually have current account deficits
What will be an ideal response?
To say that the forward market lacks liquidity means that
A) forward contracts usually result in losses. B) forward contracts cannot be turned into cash. C) it may be difficult to make the transaction. D) forward contracts cannot be sold for cash.
Scarcity implies that people must
A) be miserable. B) be selfish. C) make choices. D) not be selfish.