Marge Sampson produces and sells 400 jars of homemade jelly each month for $3 each. Each month, she pays $200 for jars, $150 for ingredients, and uses her own time, with an opportunity cost of $500 . Her economic profits each month are:
a. $350.
b. $500.
c. $650.
d. $700.
a
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All of the following are included in gross private domestic investment expenditure EXCEPT a
A) business's purchase of a fleet of cars. B) household's purchase of a new house. C) business's purchase of another company's stock. D) a retail store's purchase of shoes to add to its inventory.
Interlocking directorates and tying contracts were outlawed under the ___________ Act.
Fill in the blank(s) with the appropriate word(s).
To correct for the social impact of pollution, the government should levy a per-unit tax
A) that is the same for all polluters regardless of their locations or sizes. B) according to the economic damage of the pollution. C) according to the business activity of the polluter. D) only to those polluters that can afford to pay for the tax.
Which of the following is among the arguments against using government intervention to reduce income inequality?
A. Allowing big rewards to go to the most successful performers helps motivate creativity, innovation, and hard work. B. Governments cannot have much of an impact on income inequality, so there is little use in making the attempt. C. Large income differences eventually lead to political strife and will undermine support for a market economy. D. A wide gap between the rich and the poor tends to promote active participation in the democratic process.