A business owner makes 1000 items a day. Each day she spends 8 hours producing those items. If hired, elsewhere she could have earned $250 an hour. The item sells for $15 each. Production occurs seven days a week. If the explicit costs total $150,000 per month, what is her economic profit?
a. $300,000
b. $60,000
c. $450,000
d. $240,000
d
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An economy's resources include
A) raw materials. B) factories and machinery. C) human knowledge. D) all of the above
If a bank offers mortgages that do not require the normal 20% down payment, the bank encourages
A) people who know they might not pay off the mortgage. B) people who can't afford the down payment but can pay off the mortgage. C) people who know that they are going to pay off the mortgage. D) people who know they can't pay off the mortgage but who can afford the down payment.
Consider an economy made up of 100 people, 60 of whom hold jobs, 10 of whom are looking for work, and 15 of whom are retired. The number counted as unemployed is:
A. 10. B. 15. C. 40. D. 30.
When the Fed slows the rate of growth of the money supply to slow down the economy, the unemployment type that will be directly affected is the
A. cyclical unemployment. B. natural rate of unemployment. C. structural unemployment. D. frictional unemployment.