Taylor has the following assets and liabilities:Two cars$15,000House$400,000Mortgage$300,000Cash$1,000Car loans$5,000Checking account balance$3,000Credit card balance$3,000Â Suppose that Taylor receives a $10,000 bonus from her employer. If she puts that money toward her mortgage, her wealth would ________; if she puts that money in her checking account, her wealth would ________.
A. increase to $115,000; increase to $115,000
B. increase to $121,000; increase to $121,000
C. increase to $121,000; decrease to $101,000
D. increase to $115,000; decrease to $95,000
Answer: B
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Katy is holding an English auction. If she estimates the values of her bidders to be $2, $4, $10, $15 and $25, she should expect to be able to make ____ off the auction
a. Just above $10 b. Just below $10 c. Just above $15 d. Just below $15
Growth in a production possibilities curve diagram is shown as: a. a movement along the curve to the southeast. b. a movement along the curve to the southwest. c. an outward shift of the curve
d. an inward shift of the curve.
A monopolist’s cost curves may shift down because
A. large-scale input purchases may permit the monopolist to take quantity discounts. B. of advertising expenditure. C. competitors are pushed out of the market. D. of bureaucratic inefficiencies.
Assume the United States and Canada have the same amount of resources. In a given time period, the United States can produce 3 tons of steel or 300 tons of wheat. Canada can produce 4 tons of steel or 400 tons of wheat. This means that
A. The United States has a comparative advantage in steel. B. Canada has an absolute advantage in both steel and wheat. C. Canada has a comparative advantage in steel. D. The United States has an absolute advantage in steel.