Which of the following statements is true about profit-related income?
a. It results from hiring workers below the marginal contributions they make to the enterprise
b. It consists of rents derived from the sole ownership of capital.
c. It is the reward for undertaking the uncertainties of enterpreneurship.
d. It equals the entrepreneur's opportunity costs of labor and money capital.
e. It is the same as wage-related rents, except it is the entrepreneur who gets it.
C
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If the price of suntan lotion increases from $6 to $8 per bottle and quantity demanded decreases from 900,000 bottles to 845,000 bottles, using the midpoint method, what is the price elasticity of demand for suntan lotion?
What will be an ideal response?
Which of the following statements about Keynes' contribution to macroeconomics is correct?
A) Although he published his most important ideas about the economy long before the 1930s, few economists paid attention to Keynes until the Great Depression proved him correct. B) Keynes argued that depressions and recessions were almost always caused by changes in the money supply. C) Keynes argued that balancing the budget could be an effective way to cure a recession or depression. D) all of the above E) none of the above
The unemployment rate is an important economic statistic that can tell us about the health of the economy. If the unemployment rate turns out to be high or higher than anticipated, we would expect
A) it is more likely that an incumbent president will be re-elected. B) that stock prices are more likely to fall. C) that jobs are less difficult to find. D) that investors will be more optimistic about the economy.
In a partnership of two people
A) each person has 50 percent liability. B) it is more difficult to specialize with two persons than with one. C) each person has unlimited liability. D) the law releases each partner from legal liabilities.