The buying of a currency by a government to maintain its value above its long-run equilibrium is called currency:
A. management.
B. stabilization.
C. support.
D. ceiling.
Answer: C
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One difference between a policy of direct spending by the government on research and development and an alternative policy of tax incentives to encourage private spending on R&D is ________
A) the former improves the productivity of R&D, while the latter raises its level B) the former requires a decrease in national saving, while the latter causes an increase C) the former raises the level of R&D spending, while the latter also improves its productivity D) the former requires an increase in national saving, while the latter causes a decrease
During a year of operation, a firm collects $450,000 in revenue and spends $100,000 on labor expense, raw materials, rent, and utilities. The firm's owner has provided $750,000 of her own money form her personal portfolio instead of investing the money and earning a 10% annual rate of return. The firm also operates out of a building they own worth $1,000,000 which the owner inherited 25 years ago.
1.The explicit costs of the firm are $______________. 2. If the owner could earn 15% annually on the money she has invested in the firm, the economic profit of the firm would be ______________ (when revenue is $450,000). 3. The implicit costs are $______________. 4. The firm's accounting profit is $______________. 5. The firm earns an economic profit of $______________.
In an economy in which labor is mobile and homogeneous, the wages between industries:
a. will be equal. b. will be very unequal. c. will be less in the export industry. d. will be unequal because in some firms the management is more fair to its workers.
An outside lag is:
A. a lag in implementing policy. B. the period of time it takes for policies to work. C. a policy aimed at increasing GDP. D. a policy aimed at reducing GDP.