Based on the table below and the principle of diminishing returns to capital, then total packages wrapped when a fourth machine is installed must be less than ________ packages.Number of (Identical) MachinesTotal Packages Wrapped15,00029,000312,000
A. 3,000
B. 12,000
C. 4,000
D. 15,000
Answer: D
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James used $250,000 from his savings account that paid an annual interest of 15% to purchase a hardware store. After one year, James sold the business for $320,000 . What is his economic profit?
a. $320,000 b. $70,000 c. $282,500 d. $32,500
Which of the following is not classified as a service in the current account?
a. transportation b. insurance c. tourist expenditures d. income earned from foreign investments e. unilateral transfers
According to Friedrich Hayek and his followers, the booms and busts of the business cycle are primarily the result of
a. fluctuations in aggregate demand. b. the "animal spirits" of private investors. c. excessive credit expansion and artificially low interest rates that trigger malinvestment. d. the unwillingness of political decision-makers to follow the advice of macroeconomists who know how to alter fiscal policy in a manner that would virtually eliminate the ups and downs of the business cycle.
People in Selena’s country are brought up knowing that saving their money is a good idea, but that a little spending is also okay. As a result, Selena’s nation will be able to ______.
a. consume more in the future b. pay lower wages to workers c. produce everything it needs d. avoid investing in new capital