Scott used $4,000,00 . from his savings account that paid an annual interest of 5% to purchase a hardware store. After one year, Scott sold the business for $4,100,000 . His accountant calculated his profit to be:
a. $300,000
b. $100,000
c. $80,000
d. $20,000
b
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Suppose there is a decline in the demand for the product labor is producing. Furthermore, the price of capital, which is complementary to labor, increases. Thus, the demand for labor
A. will decrease. B. will increase. C. may either increase or decrease. D. will not change.
Necessities such as food and shelter have inelastic demand.
Answer the following statement true (T) or false (F)
Suppose the intersection of the IS and LM curves is to the left of the FE line. What would most likely eliminate a disequilibrium among the asset, labor, and goods markets?
A) A rise in the price level, shifting the LM curve up and to the left B) A fall in the price level, shifting the LM curve down and to the right C) A rise in the price level, shifting the IS curve up and to the right D) A fall in the price level, shifting the IS curve down and to the left
Suppose the market demand curve is perfectly elastic in an increasing-cost industry. If an output tax of t per unit is imposed on all producers of the good, what happens to the market equilibrium outcome?
A) The price paid by buyers increases and output declines B) The price paid by buyers does not change and output decrease C) The price paid by buyers and output increase D) The price paid by buyers and output decrease