When Acme Dynamite produces 250 units of output, its variable cost is $2,000, and its fixed cost is $500. It sells each unit of output for $25. When Acme Dynamite produces 250 units of output, its profit is:
A. $6,250
B. $3,750
C. $4,250
D. $5,750
Answer: B
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Suppose consumers save 17 percent of their incomes. If the government collects 10 dollar in taxes from each taxpayer and invested it in infrastructure, total social investment will ________ per taxpayer
A) decrease by $1.70 B) increase by $10.17 C) decrease by $8.30 D) increase by $8.30
The economic way of thinking views government as a social institution
A) in which people do not compete. B) in which the public interest has priority over private interests. C) whose actions are controlled by the will of the majority. D) whose actions are determined by individuals' perceptions of their self-interest.
In the graph below, the price of capital is $500 per unit. Given a total cost of $50,000, the maximum amount of output possible is
A. 1,100 units of output. B. 500 units of output. C. 10,000 units of output. D. 50,000 units of output. E. none of the above
The economy experiences an increase in the price level and a decrease in real domestic output. Which is a likely explanation?
a. Productivity has increased b. Excess capacity has decreased c. Input prices have dropped d. Government regulations have increased substantially