Laura's Pizza Place incurs $800,000 per year in explicit costs and $100,000 in implicit costs. The restaurant earns $1.3 million in revenues and has $5 million in net worth
Based on this information, what is the economic profit for Laura's Pizza Place?
A) $200,000 B) $400,000 C) $500,000 D) $2.8 million
B
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Higher interest rates increase both consumption and investment spending
Indicate whether the statement is true or false
A corrective tax
a. allocates pollution to those factories that face the highest cost of reducing it. b. is a form of regulation. c. works well for all types of externalities. d. is inferior to regulatory policy according to most economists.
Paper money has been in use since the
A. Roman Empire. B. eleventh century in China. C. Civil War in the United States. D. development of money-center banking in nineteenth-century London.
Credit card balances are
A) part of M1. B) part of M2. C) part of M3. D) not part of the money supply.