Which of the following statements is correct?
A) assets plus liabilities equal net worth
B) assets plus net worth equal liabilities
C) assets equal liabilities plus net worth
D) liabilities minus net worth equal assets
C
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Monopolists can make an economic profit in the long-run because of barriers to entry
Indicate whether the statement is true or false
The typical labor supply curve is upward sloping but it is possible for the curve to be backward bending —negatively sloped—at very high wage levels. Which of the following would cause a backward-bending supply curve?
A) This would occur if leisure is an inferior good. B) This would occur when the substitution effect from an increase in the wage becomes larger than the income effect. C) This would occur when a large number of workers choose leisure rather than employment at low wages; only a very large increase in the wage will lead these workers to prefer employment to leisure. D) This would occur when the income effect from an increase in the wage becomes larger than the substitution effect.
An economy has two workers, Paula and Ricardo. Every day they work, Paula can produce 4 computers or 16 shirts, and Ricardo can produce 6 computers or 12 shirts. What is the opportunity cost for Paula to produce one computer?
A. 1 shirt B. ¼ shirt C. ½ shirt D. 4 shirts
Price elasticity of supply:
A. is the percentage change in the quantity supplied of a good or service divided by the percentage change in the price of the good or service. B. is the percentage change in the price of a good or service divided by the percentage change in the quantity supplied of the good or service. C. is always a negative number. D. measures consumers' responsiveness to a change in price.