Happy Cows is a dairy farm that is currently earning $75,000 in economic profit. The managers of Happy Cows are considering adding a second dairy farm, which will generate an additional $30,000 in economic profit. It is economically sound for the managers of Happy Cows to add the second farm if, after accounting for the managerial diseconomies, the first farm's economic profits exceed ________.
A) $35,000
B) $30,000
C) $45,000
D) $25,000
C) $45,000
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A currency appreciation is disinflationary and contractionary if the
A. inward shift of the aggregate demand curve due to the fall in exports exceeds the outward shift of the aggregate supply curve due to lower input prices. B. outward shift of the aggregate demand curve due to the rise in exports exceeds the outward shift of the aggregate supply curve due to lower input prices. C. outward shift of the aggregate demand curve due to the fall in exports exceeds the inward shift of the aggregate supply curve due to higher input prices. D. inward shift of the aggregate demand curve due to lower input prices exceeds the outward shift of the aggregate supply curve due to the rise in exports.
Discuss the pattern of allocation of foreign aid by members of the Development Assistance Committee (DAC) to developing countries in recent years. What are the priorities of the DAC members in allocating foreign aid among recipients?
What will be an ideal response?
According to the H-S definition of income, employer contributions are excluded from money income.
A. True B. False C. Uncertain
Which is not a criticism of the marginal productivity theory of distribution?
A. It assumes that the existing distribution of ownership factors is fair and just when it may not be. B. It does not tell us much about real policy matters. C. A factor’s MRP does not in any way correspond to productive effort. D. It is inconsistent with most empirical observations.