The figure above shows Sam's budget line. Which of the following equals the vertical intercept of Sam's budget line?
A) Y/Pc
B) Y/Pg
C) -(Pc/Pg)
D) -(Pg/Pc)
B
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The production of capital is a form of roundabout production
a. True b. False
Which of the following has resulted from the North American Free Trade Agreement (NAFTA)?
a. Domestic producers in the United States, Canada, and Mexico have free access to larger markets. b. The low wages of Mexican workers have made it virtually impossible for American and Canadian producers to export goods to Mexico. c. A smaller variety of goods are available to consumers in all three countries. d. Unemployment has increased in all three countries.
A dairy produces and sells organic milk. Last year it sold 500,000 gallons of milk at a price of $7 per gallon. For last year, the firm's
a. total revenue was $3.5 million. b. economic profit was $3.5 million. c. accounting profit was $3.5 million. d. explicit costs were $3.5 million.
For an economy as a whole,
a. the market value of production must equal expenditure. b. investment must equal the value of stocks and bonds purchased. c. wages must equal income. d. consumption must equal saving.