Assume a machine that has a useful life of only one year costs $2,000. Assume, also, that net of such operating costs as power, taxes, and so forth, the additional revenue from the output of this machine is expected to be $2,300. The expected rate of
return on this machine is:
A. 7.5 percent.
B. 10 percent.
C. 15 percent.
D. 20 percent.
C. 15 percent.
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If a firm faces an average total cost of $100 and sells its product for $115, how much profit does it make when it sells 20 units of the product?
A) $200 B) $115 C) $300 D) $800
Minerals, animals, water and forests are all considered to be part of the resource category known as
A) capital B) entrepreneurship C) labor D) land E) none of the above
If a consumer reallocates his or her spending away from Good A and towards Good B, then the consumer's total utility will increase if:
A. MUA/PA < 0 and MUB/PB < 0. B. MUA/PA < MUB/PB. C. MUA/PA > MUB/PB. D. MUA/PA > 0 and MUB/PB > 0.
Unlike the minimum wage, the Earned Income Tax Credit does not:
A. cost the government money. B. cause low-wage workers to be laid off. C. increase total economic surplus. D. improve the economic well-being of the working poor.