Among the following people, who earns a profit?
a. a construction worker who would work for $40 per hour but actually earns $50 per hour
b. a heart surgeon who earns $400,000 a year
c. an entrepreneur who earns $25,000 a year
d. a land owner who receives $600 per acre for the 1,000 acres he owns
e. a homemaker whose work is valued at $100,00 a year even though she earns $0
C
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Homothetic goods are neither necessities nor luxuries, but rather lie on the borderline between them. ?
Answer the following statement true (T) or false (F)
To prevent the dollar from depreciating, the U.S. central bank can try to fix the currency value of the dollar when they
A) buy U.S. dollars in the foreign exchange market. B) sell U.S. dollars in the foreign exchange market. C) abandon the U.S. dollar and use another country's currency as its legal currency. D) buy foreign currencies in the foreign exchange market.
An industrial union can obtain a wage higher than the competitive level
a. without any change in total employment b. at the cost of a reduction in total employment c. and achieve higher total employment as well d. and achieve the same or higher total employment e. thus increasing the quantity of labor demanded
A unit-elastic demand curve will be concave toward the origin
a. True b. False Indicate whether the statement is true or false