The payments to owners of capital include
A. interest and profits.
B. debt and taxes.
C. wages and salaries.
D. expenses and bonuses.
E. All of the responses are correct.
Answer: A
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According to your authors, the model of perfect competition
A) is an accurate description of real-world markets. B) obscures how plan coordination occurs in the real world. C) explains how economic profits can exist over time. D) explains economic losses better than economic profits.
Christina Romer's criticism of the belief that business cycles had moderated since World War II depended on the fact that
A) estimates of the timing of business cycles since World War II had been inaccurate. B) misuse of historical data had caused economists to understate the size of cyclical fluctuations in the post-World War II era. C) economists had ignored the roles of the government and international trade in mitigating economic fluctuations prior to World War II. D) economists had left out important components of GDP, such as wholesale and retail distribution, transportation, and services, in their pre-World War II estimates.
A good example of a monopolistic competitive industry is
A. the restaurant industry. B. the local cable industry. C. the public utility industry. D. diamond mining.
Refer to the information provided in Figure 5.7 below to answer the question(s) that follow.
Figure 5.7The above figure represents the market for pumpkins both before and after the imposition of an excise tax, which is represented by the shift of the supply curve.Refer to Figure 5.7. The amount the store owners will receive per pumpkin after paying the tax is
A. $1.75. B. $3.00. C. $4.25. D. $7.25.