Assume the production of a good gives rise to external benefits. The government may increase efficiency by
A. requiring all producers of the good to be licensed.
B. subsidizing consumption of the good.
C. imposing taxes on the good.
D. taxing production of the good.
Answer: B
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Suppose you study abroad in England. When you purchase books and food, these transactions should really be recorded as
A) credits to the capital account and debits to the current account. B) debits to the capital account and credits to the current account. C) debits to the capital account and debits to the current account. D) credits to the capital account and credits to the current account.
If Slick Shades, a sunglasses manufacturer, merges with Best Lens, a lens manufacturer, and the combined firm is able to reduce the number of human resource departments from two to one, the merger created ________.
A) a hold-up problem B) synergies C) technological interdependencies D) managerial diseconomies
All of the following location characteristics can result in higher worker salaries except which one?
A) short commute time B) poor climate C) high cost of living D) unpleasant work conditions
?Maryann and Don want to open their own deli. To do so, Maryann must give up her job, where she earns $20,000 per year, and Don must give up his part-time job, where he earns $10,000 per year. They must liquidate their money market fund, which earns $1,000 interest annually. The rent on the building is $10,000 per year, and the expenses of such necessities as utilities, corned beef, and pickles are $35,000 annually. The minimum amount of revenue per year that would make it worthwhile, financially, for Maryann and Don to run the deli is _____.
a. ?$10,000 b. ?$31,000 c. ?$35,000 d. ?$45,000 e. ?$76,000