Suppose the best investment you could make with $100,000 in cash is to purchase a government bond that pays 5 percent interest per year. If you decide to invest the money in your own business instead of buying the government bond, the opportunity cost of this financial capital is
A. $50,000 per year.
B. $500 per year.
C. $5,000 per year.
D. zero, because you already had the $100,000.
Answer: C
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For many small firms, providing health insurance for their workers
A) represents their most rapidly increasing cost. B) costs virtually nothing under the ACA. C) encourages them to hire more full-time workers. D) has decreased in cost over the past 10 years.
Knowing the price elasticity of demand is important in business because it allows a manager to determine whether:
A. a price increase will cause total revenue to rise or fall. B. an increase in supply will cause total profit to rise or fall. C. a price increase will cause the quantity demanded to rise or fall. D. a price increase will cause the demand to rise or fall.
Which of the following would not be a central issue in economics?
a. Who produces the goods? b. How is production carried out? c. Who consumes what? d. What goods are produced? e. When are goods consumed and produced?
A unit tax is
a. a tax in the form of a percentage of the value of the good taxed b. a fixed tax in the form of cents or dollars per unit of the good c. a sales tax applied to a foreign good d. any tax levied on a good e. the same as a poll tax