National income is the sum of
a. wages and profits.
b. wages, interest, profits, and rent.
c. interest and rent.
d. wages, transfer payments, and tax revenues.
b
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According to the long-run Phillips curve, in the long run monetary policy influences
a. inflation but not the unemployment rate; this is consistent with classical theory. b. inflation but not the unemployment rate; this is inconsistent with classical theory. c. the unemployment rate but not inflation; this is consistent with classical theory. d. the unemployment rate but not inflation; this is inconsistent with classical theory.
In the fractional reserve banking system
A. only a fraction of bank assets at any one time may be used to create money. B. only a fraction of a bank's liabilities must be held as reserves to meet withdrawals at any one time. C. a bank receives only a fraction of the reserve it needs at any given time. D. All of the choices are correct.
A demand schedule
A. holds quantity constant. B. is only for a given time period. C. holds all prices constant. D. is for a given variety of goods.
Tommy's Teddy Bears incurs $300,000 per year in explicit costs and $50,000 in implicit costs. The shop earns $600,000 in revenues and has $1.1 million in net worth. Based on this information, what is economic profit for Tommy's Teddy Bears?
A) $250,000 B) $300,000 C) $500,000 D) $1.35 million