When there is an excess of expected net income over the cost of capital
A) abnormal net income is positive.
B) accounting profits are negative.
C) abnormal net income is negative.
D) economic profits minus abnormal net income is negative.
A
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Which of the following is TRUE?
A) APC - APS = 1 B) MPC + MPS = 1 C) 1 + APC = APS D) APC + MPS = 1
As units of input are added to the production process, the average product
a. rises and then declines. b. declines and then rises. c. remains the same. d. is always greater than the marginal product.
Membership in the Group of Five consists of both developed and developing countries.
Indicate whether the statement is true or false.
Refer to the data provided in Table 17.1 below to answer the following question(s). The table shows the relationship between income and utility for Jane.Table 17.1 IncomeTotal Utility $00$20,00025$40,00045$60,00060$80,00070Refer to Table 17.1. Suppose Jane has a 1/3 chance of becoming disabled in any given year. If she does become disabled, she will earn $0. If Jane does not become disabled, she will earn her usual salary of $60,000. Jane has the opportunity to purchase disability insurance for $20,000 which will pay her her full salary in the event she becomes disabled. Jane's utility per year with the policy is ________ and her expected utility without the policy is ________.
A. 60; 40 B. 45; 45 C. 20; 45 D. 45; 40