Which of the following is true?
a. Large corporations earn profits, while smaller firms realize losses.
b. Profits attract businesses to productive projects, while losses discourage them from undertaking unproductive activities.
c. Profits indicate that businesses are over-charging customers, while losses suggest that they should raise customer prices.
d. If corporations want to increase profits, they will always be able to do so by either increasing product prices or reducing employee wages.
b. Profits attract businesses to productive projects, while losses discourage them from undertaking unproductive activities.
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In the long run, foreign labor remains cheap when and if
a. it becomes highly efficient and competes successfully internationally. b. countries erect barriers to trade between poor countries. c. productivity increases more rapidly in poor countries than in rich countries. d. it remains inefficient compared to other countries' labor.
According to the World View titled "Jeffrey Sachs: Big Money, Big Plans," how did Columbia University economics professor Jeffrey Sachs expect extreme poverty to be eliminated by 2025?
A. Rich nations must quadruple their foreign aid flows now, and poor nations need to be more accepting of help. B. Rich nations must double their foreign aid flows now and develop full-scale, comprehensive plans for the poor countries to reduce poverty. C. Rich nations must double their foreign aid flows now and then double them again in 10 years, while poor nations must develop full-scale, comprehensive plans for poverty reduction. D. Poor nations must develop full-scale, comprehensive plans for poverty reduction without the help of rich nations.
Currently, college graduates are earning about ____ more than high school grads over the course of their careers.
A. $100,000 B. $1,000,000 C. 25 percent D. 60 percent
Suppose a small island nation imports sugar for its population at the world price of $1,500 per ton. The domestic market for sugar is shown below.
If the government provides a subsidy of $500 per ton, then the cost of subsidy, which must be borne by taxpayers, will be ________ per day.
A. $2,000 B. $5,000 C. $6,000 D. $500