Refer to the information provided in Figure 6.2 below to answer the question(s) that follow.
Figure 6.2Refer to Figure 6.2. Assume Mr. Lingle is on budget constraint AC. If the price of a gardenburger is $6, Mr. Lingle's monthly income is
A. $24.
B. $60.
C. $200.
D. $240.
Answer: D
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Profits
A) are a cost of doing business because they are payments to others. B) are not a cost of doing business because they are owed to resource owners. C) are not a cost of doing business because they are often zero or negative. D) are a cost of doing business because entrepreneurs would not incur the risk of starting a business if they didn't expect to earn profits.
What role does research and development play in increasing productivity?
What will be an ideal response?
Given the production function q = 1.37LK, what is the marginal product of labor?
A) 1.37 B) 0 C) 1.37K D) Cannot be determined with the information given.
Assume that the government implements a deficit-reduction policy that results in changes in aggregate income and output. Then the Federal Reserve engages in monetary policy actions that reverse the changes in income and output caused by fiscal policy action. Which of the following sets of changes in taxes, government spending, the required reserve ratio, and the discount rate is most consistent with these policies?
(a) Increase / Increase / Decrease / Increase (b) Increase / Decrease / Decrease / no change (c) Increase / Decrease / Increase / Decrease (d) Decrease / Increase / no change / Increase (e) Increase / Decrease / Decrease / Increase