If you had economic profits of $50,000, implicit costs of $100,000, and sales of $500,000 how much were your accounting profits?
What will be an ideal response?
Economic profits ($50,000) + implicit costs ($100,000) = accounting profits ($150,000)
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Which of the following is true of bank reserves held at the Fed?
A) These reserves are a liability to the bank and an asset to the Fed. B) These reserves are a liability to both the bank and the Fed. C) These reserves are an asset to the bank and a liability to the Fed. D) These reserves are an asset to both the bank and the Fed.
Market demand curves are obtained by
A) observing the behavior of an individual consumer in a market. B) observing the prices and quantities sold in a market over time and plotting those price-quantity combinations in a graph. C) averaging the quantities every consumer is willing to buy at each different price. D) summing the quantities every consumer is willing to buy at each different price. E) determining the price each consumer is willing to pay for the good and summing those prices across all consumers.
Cheating in a cartel is more likely to occur if the industry
A) has a large number of firms. B) has homogeneous products. C) has easily observable prices. D) has little variation in prices.
What is the future value of $800 one year from today if the interest rate is 7 percent?
a. $747.66 b. $756.00 c. $856.00 d. None of the above are correct to the nearest cent.