Discounting allows comparisons of
a. money values and physical values.
b. interest payments on borrowed funds and interest payments on loaned funds.
c. money values received at different times.
d. the quantities of outputs produced by different types of capital goods.
c
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Refer to Figure 12-7. If the market price is P3 the firm
A) will earn enough revenue to cover its variable costs but not its fixed costs. B) will break even. C) will make a profit. D) will produce a quantity of Q1.
The Lorenz curve is criticized for all of the following EXCEPT
A) that it excludes transfers-in-kind income. B) that it does not account for the size differences of households. C) that it does not account for age differences of households. D) that it does not account for the impact of trade on the standard of living.
The demand for cars in a certain country is given by: D = 20,000 - P, where P is the price of a car. Supply by domestic car producers is: S = 5,000 + 0.5P.If this economy is open to trade, and the world price of a car is $6,000, the domestic quantity demanded will be ________ and quantity supplied will be ________.
A. 8,000; 14,000 B. 12,000; 8,000 C. 14,000; 8,000 D. 12,000; 10,000
An equilibrium in the labor market is a situation in which:
A. there is no pressure for wages to change. B. there is no unemployment. C. wages exceed minimum wage. D. marginal revenue product equals the wage.