The goal of most business firms is to:
a) Maximize total profit.
b) Maximize both total revenue and total profit at the same time.
c) Produce as much output as possible.
d) Maximize total revenue.
Answer: a) Maximize total profit.
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Beth can earn $7,500 by renting out her house. However, her neighbor keeps a pet dog that chases away whoever comes looking for the house. Because her neighbor has a right to keep his pet untied, Beth is unable to find a tenant
What is the efficient outcome in this case if her neighbor values keeping his pet free for $1,500?
The table shows the distribution of human and non-human capital for two people, Sam and Janet
a) Looking just at tangible assets (non-human capital), by how many times does Janet's wealth exceed Sam's? b) Assume that both human and non-human capital earn a 10 percent annual interest rate. Calculate Sam's and Janet's total income. c) By how many times does Janet's total income exceed Sam's? d) Which comparison results in a more equal distribution? e) Which comparison gives a better indication of each person's economic condition?
An entrepreneur is an individual who sees an opportunity to sell an item at a price higher than the average total cost of producing it.
Answer the following statement true (T) or false (F)
GDP per capita can be summarized to be:
A. a measure of average well-being in a country. B. a gauge of the direction an economy when we examine GDP changes over one year. C. the measureofvalue of all activity inside a national economy. D. the best measure of well-being for all citizens inside a country