Jane wins $100,000 in a lottery and immediately uses her winnings to open up a donuts shop. Her direct cost is $50,000 . and she puts the remaining money in a savings account earning 10 percent annual interest. Alternatively, Jane could have placed all her lottery winnings in the 10 percent savings account. Jane's total cost of opening up a donuts shop is:
a. $60,000.
b. $50,000.
c. $160,000.
d. $45,000.
e. $55,000.
a
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On average, truck drivers who drive on dangerous ice-covered roads earn more per mile driven than similarly skilled truck drivers who drive on normal roads. The difference in pay can be attributed to
a. the marginal product of labor. b. the marginal product of capital. c. diminishing marginal returns. d. a compensating differential.
In monopolistic competition and ________, economic profit will move towards zero.
A. monopoly B. perfect competition C. natural monopoly D. oligopoly
As the central bank of the United States, the Fed does not have any liabilities on its balance sheet.
Answer the following statement true (T) or false (F)
Refer to the information provided in Figure 5.6 below to answer the question that follows.
Figure 5.6Refer to Figure 5.6. The market is initially in equilibrium at Point A and supply shifts from S1 to S2. Which of the following statements is true?
A. There is no need for price to serve as a rationing device in this case because the new equilibrium quantity exceeds the original equilibrium quantity. B. The market cannot move to a new equilibrium until there is also a change in demand. C. Price will still serve as a rationing device causing quantity supplied to exceed 12 thousand pizzas. D. Price will still serve as a rationing device causing quantity demanded to fall from 12 to 10 thousand pizzas.