Figure 4.5 illustrates a set of supply and demand curves for hamburgers. An increase in supply and a decrease in demand are represented by a movement from
A) point d to point a. B) point b to point d. C) point a to point c. D) point d to point b.
C
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Which of the following theories argues that people form the most accurate possible expectations about the future using all information available to them?
a. The theory of adaptive expectations b. The theory of rational expectations c. The theory of sticky wage d. The theory of absolute advantage
If excess reserves are $10,000, demand deposits are $100,000, and the required reserve ratio is 10 percent, then total reserves are
A. $0. B. $110,000. C. $20,000. D. $10,000.
If a nation is going to achieve and sustain a high rate of economic growth, it must
A) have a mechanism capable of attracting savings and channeling them into wealth-creating projects. B) prohibit low-wage foreign producers from supplying goods to the domestic market. C) have an abundant domestic supply of low cost energy resources. D) impose regulations that will limit the intensity of competition among domestic firms.
Refer to Scenario 7.4 below to answer the question(s) that follow.SCENARIO 7.4: You own and are the only employee of a company that sells custom embroidered pet sweaters. Last year your total revenue was $120,000. Your costs for equipment, rent, and supplies were $30,000. To start this business you invested an amount of your own capital that could pay you a $50,000 a year return.Refer to Scenario 7.4. Your accounting profit last year was
A. $20,000. B. $40,000. C. $70,000. D. $90,000.