Samantha has been working for a law firm and earning an annual salary of $90,000 . She decides to open her own practice. Her annual expenses will include $15,000 for office rent, $3,000 for equipment rental, $1,000 for supplies, $1,200 for utilities, and a $35,000 salary for a secretary/bookkeeper. Samantha will cover her start-up expenses by cashing in a $20,000 certificate of deposit on which
she was earning annual interest of $1,000 . Assuming that there are no additional expenses, Samantha's total annual cost of production will equal
a. $55,200
b. $221,400
c. $91,000
d. $146,200
e. $145,200
D
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In the simple Keynesian model, if aggregate expenditures exceed current output, inventories will ____ and businesses will ____ output.
a. decrease; increase b. decrease; decrease c. decrease; not change d. increase; decrease
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point B to Point C so that an additional 20 OLED televisions could be produced, production of LCD televisions would have to be reduced by
A. more than 30. B. exactly 60. C. fewer than 30. D. exactly 30.
The collection and use of data to test economic theories is
A. empirical economics. B. descriptive economics. C. positive economics. D. normative economics.
Which of the following is the set of conditions necessary for long-run equilibrium for a perfectly competitive firm?
A. P = SRMC = SRAC = LRAC B. P = SRMC = SRAC > LRAC C. P = SRMC < SRAC = LRAC D. P > SRMC = SRAC = LRAC