Which of the following explains most clearly why business owners have a strong incentive to strive for operational efficiency?
a. They recognize that operational efficiency promotes the public interest.
b. As residual claimants, owners will receive a higher income from increased efficiency.
c. The owners will be able to keep production costs low by providing free managerial services to the firm.
d. The owners will be able to gain by paying employees below market wages, which will improve the overall efficiency of the economy.
B
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Real GDP is the value of goods and services
A) adjusted only for unanticipated inflation. B) adjusted only for anticipated inflation. C) using base-year prices. D) using current-year prices.
Answer the following statement(s) true (T) or false (F)
1. The price of a bond can be expressed as its Face Value minus its Discount. 2. A dividend is the amount of money a shareholder is paid (per share) at years end. 3. A representative agent is someone that acts as a proxy for an investor during corporate votes. 4. If marginal costs are significant, then the price of an exhaustible resource grows at the rate of interest.
Corporate profits are taxed twice.
Answer the following statement true (T) or false (F)
According to the graph shown, if the market is in equilibrium, producer surplus is:
A. $30.
B. $20.
C. $50.
D. $60.