Total expenditure equals total income
A) if firms do not save for future investment.
B) if firms earn zero profit.
C) because firms pay out everything they receive as income to the factors of production.
D) only if net taxes equals government expenditures on goods and services.
E) only if firms sell all the goods they produce in a given time period.
Ans: C) because firms pay out everything they receive as income to the factors of production.
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When the Fed ________ the federal funds rate, other short-term interest rates ________ and the exchange rate ________
A) lowers; rise; rises B) raises; fall; rises C) raises; rise; rises D) raises; rise; falls E) lowers; rise; falls
What is the four-firm concentration ratio if the four largest firms in an industry account for 5 percent, 6 percent, 7 percent, and 8 percent of total revenue?
A) 26 percent B) 174 percent C) 1,680 D) There is enough information given to answer the question, but none of the answers above are correct. E) There is not enough information given to answer the question.
The reserves kept as cash in the vault of a commercial bank are considered its assets
a. True b. False Indicate whether the statement is true or false
The opportunity cost of investing in a new lithotripter (a machine that pulverizes kidney stones with sound waves) is:
a. defined by the dollar cost of the equipment. b. defined by the next best use of the money invested in the equipment. c. the same for every health care provider. d. impossible to calculate. e. measured by the difference between the expected revenues from selling the services of the lithotripter and the invoice cost of the machine