Jake sells Star Wars memorabilia on eBay. His annual revenue is $42,000 per year, the explicit costs of his business are $10,000, and the opportunity costs of his business are $18,000 per year. What is his economic profit?
A) $14,000 B) $24,000 C) $32,000 D) $34,000
A
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A bank's assets consist of $500,000 in total reserves, $1,600,000 in loans, and a building worth $1,200,000 . Its liabilities and capital consist of $2,000,000 in demand deposits and $1,300,000 in capital. If the required reserve ratio is 25 percent, what is the level of the bank's excess reserves? How much money could the excess reserves be used to create in the banking system as a result?
a. zero; zero b. $500,000; $500,000 c. $500,000; $2,000,000 d. $250,000; $1,000,000
According to the open-economy macroeconomic model, a decrease in the U.S. government budget deficit increases U.S. net capital outflow, causes the real exchange rate of the dollar to depreciate, and increases U.S. net exports
a. True b. False Indicate whether the statement is true or false
If a good's price is volume sensitive, the consumer will:
A. choose the bundle on the budget line that lies on the lowest indifference curve. B. choose the bundle on the budget line where the budget line is "kinked." C. choose a boundary solution. D. choose the bundle on the budget line that lies on the highest indifference curve.
A change in the relative prices of two goods is represented graphically by:
A. a change in the slope of an indifference curve. B. a rightward parallel shift of the budget line. C. a leftward parallel shift of the budget line. D. a change in the slope of the budget line.