Tommy's Teddy Bears incurs $300,000 per year in explicit costs and $50,000 in implicit costs. The shop earns $600,000 in revenues and has $1.1 million in net worth. Based on this information, what is accounting profit for Tommy's Teddy Bears?
A) $250,000 B) $300,000 C) $500,000 D) $1.35 million
B
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In the current debate over fiscal policy, advocates of returning to significant budget surpluses
A) contended that the economic miracle of the late 1990s caused the budget surpluses. B) think that tax cuts will benefit the wealthy. C) believe that tax cuts will continue the dependence of the United States on borrowing from foreigners. D) All of the above.
The ratio of the burden of the tax borne by demanders to the burden born by suppliers will be equal to the sum of the absolute values of the slopes of the demand curve and the supply curve
a. True b. False
The GDP deflator is a measure of the overall change in prices in an economy:
A. based on goods and services valued at constant prices. B. using the ratio of real to nominal GDP. C. based on price-changes determined when output is held constant. D. using the ratio of nominal to real GDP.
A firm sells in a competitive market in which price is $12 . Its marginal cost is 6 + .25Q. Determine the profit-maximizing level of output