If your business earns $10,000 in revenues, has explicit costs of $7,000, and implicit costs of $5,000, your accounting profit is
A) $2,000.
B) -$2,000.
C) $5,000.
D) $3,000.
D
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Which of the following would we not expect if government policy moves the economy up along a given short-run Phillips curve?
a. Mark gets an increase in his nominal wage. b. Bob gets more job offers. c. Susan reduces prices at her pizza restaurant. d. Tom reads that the central bank recently raised the money supply
The external costs of cigarettes are related to the health problem smoking produces for both smokers and nonsmokers. One estimate places these costs at 29 cents per pack. Presently, sales and excise taxes on cigarettes average about 37 cents per pack. These estimates suggest that (i) cigarette consumption is below the optimal or efficient quantity; (ii) cigarette taxes should be reduced.
A. i and ii B. i but not ii C. ii but not i D. neither i nor ii
Figure 33-3
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Given the situation in graph (1) in Figure 33-3, what can be expected to change in graph (1) when the economy’s self-correcting mechanism operates?
A. Aggregate demand increases. B. Aggregate demand decreases. C. Aggregate supply increases. D. Aggregate supply decreases.
If the foreign exchange rate is one dollar for 10 South African rand, then how many dollars are needed to purchase an item that costs 100 rand?
A. 0.01 B. 100 C. 1,000 D. 10