Which of the following individuals is a supplier of loanable funds in the economy?
a. Sam, a software developer, who uses his saving to buy a share of his company every three months
b. Joe, a cab driver, who keeps his income as cash inside a locker in his house
c. Lina, a hair stylist, who spends her income to buy new cosmetics for her parlor
d. Moe, a farmer, who spends his income to buy food for homeless people
a
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Taiwan and South Korea are examples of developing nations that have recently pursued these industrialization policies
A) import substitution. B) export promotion. C) commercial dumping. D) multilateral contract. E) trade embargoes.
Give an example of a sunk cost and describe how sunk costs should affect future actions.
What will be an ideal response?
Farmer Jones is producing wheat, and must accept the market price of $6.00 per bushel. At this time, her average total costs and her marginal costs both equal $8.00 per bushel. Her average variable costs are $5 per bushel. In order to maximize profits or minimize losses, farmer Jones should:
A. Increase output B. Increase selling price C. Produce zero output and close down D. Continue producing, but reduce output
You are more likely to do-it-yourself than hire a plumber to repair a leaky drain pipe
a. as the tax rate on your earned income dramatically decreases b. if the opportunity cost of your time decreases c. the less knowledge and experience in plumbing repair work that you possess d. if you already own the specialized tools required to complete the repair work e. as the transaction cost of the do-it-yourself repair work increases