Refer to Scenario 7.3 below to answer the question(s) that follow. SCENARIO 7.3: Upon graduating with an accounting degree, you open your own accounting firm of which you are the sole employee. To start the firm you passed on a job offer with a large accounting firm that offered you a salary of $60,000 annually. Last year you earned a total revenue of $100,000. Rent and supplies last year were $50,000. Refer to Scenario 7.3. Your annual economic costs are
A. $0.
B. $50,000.
C. $60,000.
D. $110,000.
Answer: D
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When lenders are unable to get good information about the worthiness of a project the lender has the problem of
A) adverse selection. B) moral selection. C) moral hazard. D) adverse hazard.
Based on the results of the checkerboard model, segregation in the United States appears to be the ________ outcome of a genuine collective action problem, where individuals, in pursuing their own interests, create an outcome that most people agree
is ________. A) avoidable; ideal B) avoidable; less than ideal C) unavoidable; ideal D) unavoidable; less than ideal
"As consumption of a good increases, the extra satisfaction received from consuming an additional unit of the good decreases." This statement is known as the law of:
a. demand. b. increasing costs. c. diminishing marginal utility. d. diminishing marginal returns. e. total utility.
Macroeconomics differs from microeconomics in that macroeconomics focuses on:
A. individual choices and group behavior in individual markets. B. production in specific markets. C. prices in specific markets. D. the performance of national economies and ways to improve that performance.