The rate of interest is the price at which money is borrowed and loaned
a. True
b. False
Indicate whether the statement is true or false
True
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The following is cost information for the Creamy Crisp Donut Company: Entrepreneur's potential earnings as a salaried worker = $50,000 Annual lease on building = $22,000 Annual revenue from operations = $380,000 Payments to workers = $120,000
Utilities (electricity, water, disposal) costs = $8,000 Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000 Entrepreneur's forgone interest on personal funds used to finance the business = $6,000 Refer to the data. If, other things equal, Creamy Crisp's revenue fell to $286,000: A. its implicit costs, including a normal profit, would exceed its explicit costs. B. it would earn a normal profit but not an economic profit. C. it would suffer an economic loss. D. its accounting profit would fall to zero.
What tool is available to monetary policymakers to shift the short-run aggregate supply curve to the left following a positive inflation shock?
A. A rightward shift of the monetary policy reaction curve B. A leftward shift of the monetary policy reaction curve C. None of the answers given is correct; the actions of monetary policymakers affect the dynamic aggregate demand curve D. Open market purchases of government securities
When a market is in equilibrium, the total amount of consumer surplus must be ________ the total amount of producer surplus
A) larger than B) equal to C) less than D) None of the above answers are correct.
Back-loading of employees' wages helps a company because:
a. they act as incentives for employees to work hard throughout their tenure with the company. b. they completely eliminate all sorts of opportunistic behavior on the part of the employee throughout his/her tenure with the company. c. they reduce the actual cost burden of the employee on the company. d. they prevent opportunistic behavior on the employer's part.