A corporation's earnings are the amount of revenue it receives for the sale of its products
a. minus its cost of production as measured by its accountants. Earnings must be paid out as dividends.
b. minus its cost of production as measured by its accountants. Earnings may be paid out as dividends or retained by the corporation.
c. minus its direct and indirect costs as measured by its economists. Earnings must be paid out as dividends.
d. minus its direct and indirect cost as measure by its economists. Earnings may be paid out as dividends or retained by the corporation.
b
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Refer to the table. Based on cost-benefit analysis, the city should:
Answer the question on the basis of the following table that shows the total costs and total benefits facing a city of five different potential baseball stadiums of increasing size. All figures are in millions of dollars.
A. not build any of these stadiums.
B. build stadium E.
C. build stadium C.
D. build stadium D.
If the economy is in an equilibrium with real GDP less than potential GDP, a fiscal stimulus could move the economy toward potential GDP by simultaneously ________ taxes and ________ government expenditures on goods and services
A) raising; increasing B) raising; decreasing C) cutting; increasing D) cutting; decreasing E) raising; not changing
Which of the following statements is always true? a. An increase in price will lead to an increase in producer surplus along a supply curve. b. An increase in price will lead to an increase in consumer surplus along a demand curve. c. A price ceiling will lead to an increase in consumer surplus
d. A price floor will lead to an increase in consumer surplus.
If purchasing-power parity holds, a dollar will buy
a. one unit of each foreign currency. b. foreign currency equal to the U.S. price level divided by the foreign country's price level. c. enough foreign currency to buy as many goods as it does in the United States. d. None of the above is implied by purchasing-power parity.