All of the following would be considered explicit costs of operating a business except
A) rent paid to a landlord.
B) bonuses paid to employees.
C) a normal rate of return for investors.
D) corporate income taxes.
Answer: C
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When calculating the price elasticity of demand, it is assumed that all of the other determinants of demand are to be held constant
Indicate whether the statement is true or false
Which of the following policies is a supply-side policy?
a. Reduction in taxes. b. Reduction in regulation. c. Reduction in resource prices. d. Subsidies to produce technological advances. e. All of these.
Use the following scenario for the question below. A group of 100 people seeks out an insurance company to underwrite health insurance for its members. The expected medical spending for the group is $150,000. What will the average premium be if the health insurance company estimates the premium adding net loading costs of 15 percent?
a. $1,200 b. $2,250 c. $1,500 d. $1,725 e. $1,765
Suppose an economy’s real GDP is $50,000 in year 1 and $55,000 in year 2. What is the growth rate of its GDP? Assume that population was 100 in year 1 and 105 in year 2. What is the growth rate in GDP per capita?
Please provide the best answer for the statement.