Jamar used to work as an office manager, earning $40,000 per year. He gave up that job to start a life-coaching business. In calculating the economic profit of his life-coaching business, the $40,000 income that he gave up is counted as part of the life-coaching business's
a. total revenue.
b. opportunity costs.
c. explicit costs.
d. marginal costs.
b
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Slower real wage growth in the U.S. since the 1970s accompanied by rapid job growth, can be explained by:
A. a productivity slowdown accompanied by a decrease in the labor supply. B. skill-biased technological change. C. globalization. D. a productivity slowdown accompanied by an increase in the labor supply.
A firm with market power will be able to sell all of their output at any price they desire.
Answer the following statement true (T) or false (F)
If a bank sells off all of its assets and pays all of its liabilities, the amount remaining would be its:
A. net profit. B. reserves. C. excess reserves. D. net worth.
Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher