The total cost of the firm
A. includes implicit and explicit costs.
B. includes implicit costs but excludes explicit costs.
C. includes implicit and explicit costs but excludes a normal rate of return on investment.
D. includes explicit costs but excludes implicit costs.
Answer: A
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The supply-side motivated tax cuts of 1981 during the Reagan administration were aimed at
A) balancing the federal budget. B) decreasing aggregate supply. C) increasing aggregate demand. D) increasing aggregate supply.
A simultaneous $10 million increase in both taxes and government spending will have no net effect on aggregate demand
a. True b. False Indicate whether the statement is true or false
Malfeasance at Enron, a Houston-based energy firm, led to overstatement of revenues by almost $92 billion. As Enron closed its operations, U.S. energy prices remained stable. This may have been evidence that
A. there was lack of any competition, so Enron was the winner. B. Enron could charge whatever price it wanted to for energy. C. the accounting profession needs to review its policies quickly. D. there is a competitive market in energy distribution in the United States.
Suppose purchasing power parity holds. If the price level in the United States is 100 dollars per good and the price level in Japan is 250 yen per good, then the nominal exchange rate is ________ yen per dollar.
A. 0.25 B. 2.5 C. 0.4 D. 4.0