Myron worked at a factory where he earned $20,000 per year. One day, he quit his job and opened a bumper sticker business. After one year, his business earned $60,000 in sales revenue and he incurred $30,000 in direct business expenses. If he received no salary from the new business, what is his economic profit?
a. $10,000
b. $30,000
c. $60,000
d. $20,000
e. $50,000
A
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Changes in a currency's exchange rate adjust immediately to insure that
A) official settlements account parity always prevails. B) net exports always equal zero. C) interest rate parity always prevails. D) current account balance equals zero. E) purchasing power parity always prevails.
Any point on the aggregate demand schedule must also be
A) a point that clears the market for real money balances. B) a combination of real interest rates and income where aggregate desired expenditures is in balance. C) a point where money demanded is equal to money supplied. D) all of the above.
A firm that faces a high-demand period followed by a low-demand period must determine all of the following for peak-load pricing except which one?
A) short-term off-peak price B) short-term peak quantity C) long-run capacity D) long-term off-peak quantity
Refer to the above table. If the price of the good produced is $5, the marginal revenue product of the 7th worker is
A) $125. B) $275. C) $5000. D) $55.