Scott used $4,000,00 . from his savings account that paid an annual interest of 5% to purchase a hardware store. After one year, Scott sold the business for $4,100,000 . An Economist calculated his profit to be:
a. $300,000
b. $100,000
c. -$100,000
d. -$200,000
c
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The evidence on the interest sensitivity of the demand for money suggests that the demand for money is ________ to interest rates, and there is ________ evidence that a liquidity trap exists
A) sensitive; substantial B) sensitive; little C) insensitive; substantial D) insensitive; little
Other things remaining constant, higher trade deficits in the U.S. will lead to: a. U.S citizens buying greater foreign securities
b. an increase in domestic savings in the U.S. c. a decrease in the demand for U.S. dollars. d. an increase in funds from abroad. e. an increase in the standard of living of the U.S residents.
In the same city, one job currently pays $6 more per hour than another job. The two jobs have equivalent training requirements, but labor is not migrating toward the higher-paying occupation. Both markets are perfectly competitive. Which of the following conclusions is correct?
a. The lower-paying occupation has less attractive nonmonetary characteristics. b. There are barriers to entry into the higher-paying occupation. c. The higher-paying occupation has a dominant labor union. d. There are barriers to entry into the lower-paying occupation. e. The higher-paying occupation has less attractive nonmonetary characteristics.
A government agency is having problems with personal telephone calls made during working hours. Because each minute of a personal call costs the agency $0.50 in wasted wages, it has decided to hire operators to monitor calls. The agency wants to hire the number of operators that will minimize the total cost of personal calls. 
Based on the above information, what is the most the agency would be willing to pay the fifth operator?
A. $100 B. $400 C. $200 D. $500 E. none of the above