You use $2,000 of your own money to start a dog-sitting service. During the first year you earn a 10% return on your investment. If the current interest rate is 7%, you earn an economic profit of
A. $60.
B. $140.
C. $200.
D. $340.
Answer: A
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Use the following table to answer the next question. All figures in the table below are in billions of dollars. RGDPAggregate Expenditures (Closed Economy)ExportsImports$400$440$50$60450480506050052050605505605060600600506065064050607006805060If exports should decrease by $20 billion at each level of real GDP, other factors constant, then the equilibrium real GDP for the economy will be
A. $500 billion. B. $450 billion. C. $550 billion. D. $650 billion.
All of the following are required to make a tying arrangement vulnerable to antitrust prosecution except which one?
A) There must be some nontrivial amount of commerce affected by the tying contract. B) There must be proof of an actual tie between two products. C) There must be at least two products involved. D) The seller cannot have substantial market power in the market for the tying product.
If a panic causes Indian depositors to withdraw their money from Japanese banks, it would cause the Japanese Yen to ___________, since the supply of Yen has__________
a. Appreciate; Decrease b. Depreciate; Decrease c. Appreciate, Increase d. Depreciate; Increase
If there is a widespread bias against African-American workers, an increase in the collective discrimination coefficients of employers will:
A. reduce the African-American wage rate, increase African-American employment, and lower the actual African-American-white wage ratio. B. reduce the African-American wage rate, decrease African-American employment, and lower the actual African-American-white wage ratio. C. increase the African-American wage rate, increase African-American employment, and increase the actual African-American-white wage ratio. D. increase the African-American wage rate, reduce African-American employment, and increase the actual African-American-white wage ratio.