The amount earned by owners of the nation's factors of production is
A) total income.
B) private and government transfer payments.
C) the wages and fringe benefits received by the nation's workers.
D) all profits received by businesses.
A
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An example of indexing is a "cost of living" adjustment clause in a wage contract
a. True b. False Indicate whether the statement is true or false
Which of the following items is most likely to be an implicit cost of production?
a. the "competitive rate" salary the owner of the business pays herself for services provided b. property taxes on a building owned by the firm c. rental payments for a building utilized by the company and rented from another party d. the interest income foregone on the equity capital invested by owners
Which of the following would be expected to increase the demand for U.S. currency?
A. Political instability rises dramatically in developing nations. B. On-line banking allows customers to transfer funds between checking and stock mutual funds 24 hours a day. C. The economy enters a recession. D. Competition among brokers forces down the commission charge for selling bonds or stocks.
Refer to Scenario 7.5 below to answer the question(s) that follow.SCENARIO 7.5: You own and are the only employee of a company that customizes bicycles. Last year your total revenue was $60,000. Your costs for rent and supplies were $25,000. To start this business you invested an amount of your own capital that could pay you a $45,000 a year return.Refer to Scenario 7.5. Your economic profit last year was
A. -$20,000. B. -$10,000. C. $15,000. D. $35,000.