Justin's bank employs tellers and ATMs. Both are able to serve clients in the exact same way and therefore are perfect substitutes. Describe the elasticity of substitution between the two inputs
What will be an ideal response?
The elasticity is infinite. The firm is able to freely substitute the goods since they are perfect substitutes (without altering the MRTS).
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Under the Patient Protection and Affordable Care Act (ACA), individuals who do not have health insurance will be subject to a fine
Indicate whether the statement is true or false
If the real wage decreases, the opportunity cost of working in the home will
a. increase b. decrease c. not be affected d. increase as long as worker productivity also rises e. increase only if households want to maintain their standard of living
Combining the home money market and the uncovered interest parity relationship, we can see how changes in variables determine:
a. real GDP. b. the exchange rate. c. the price level. d. the quantity of money.
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