Joanne left her last job, in which she was earning $60,000, in order to form her own consulting business. Her revenues for the first year of consulting were $210,000. During that year, she hired two assistants for $25,000 each and spent $25,000 on office equipment. In addition, she incurred $75,000 in miscellaneous expenses. Her accounting profit that first year was
A) $0.
B) $60,000.
C) $210,000.
D) $50,000.
Answer: B
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According to Gordon, a major problem with Keynes' "rigid nominal wage" theory of the business cycle is
A) a horizontal LM curve. B) it is not a market clearing theory. C) falling real wages are not countercyclical with business activity or Y. D) None of the above.
Jim is planning on attending a football game. He spent $40 on the ticket. He will have to take the day off losing 8 hours of work. His hourly wage is $10 . He estimates it will cost him around $20 for gas and parking at the game. Jim's total economic cost of attending the game equals
a. $80 b. $40 c. $60 d. $140
We all know that the United States has the highest per capita health care spending in the world. Which country has the second highest?
a. Japan. b. Germany. c. Switzerland. d. Great Britain. e. France.
Suppose consumption decreases at each price level. As a result, aggregate demand __________, and the AD curve shifts __________
A) increases; leftward B) decreases; leftward C) increases; rightward D) decreases; rightward