A small business owner earns $60,000 in revenue annually. The explicit annual costs equal $40,000. The owner could work for someone else and earn $25,000 annually. The owner's accounting profit is ________ and owner's economic profit is ________
A) $20,000, $5,000
B) $20,000, -$5,000
C) $25,000, -$5,000
D) $45,000, -$5,000
B
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In the United States the real wages of the least-skilled, least educated workers have ________ and the wages of best-educated, highest skilled workers have ________.
A. increased; increased B. declined; remained constant C. increased; declined D. declined; increased
Identify whether each of the following policies is an example of (1 ) a discretionary fiscal policy, (2 ) an example of an automatic stabilizer, or (3 ) not a fiscal policy
a. Food stamps b. Government spending on rebuilding airports c. Tax credits for the purchase of energy efficient appliances d. The extension of the "Bush tax cuts" of 2001 and 2003 e. Changing the required reserve ratio f. The bailout of large financial institutions during the financial crisis g. The progressive income tax system
Which of the following characteristics does a public good have?
a. Nonexcludable and rival b. Excludable and rival c. Non-excludable and nonrivalrous d. Excludable and nonrivalrous
One problem with consumer interviews is that
A. response bias. B. the sample may not be a representative sample. C. interviews allow for rapid turnaround. D. both a and b E. all of the above