Consumer spending is an injection in the circular flow of income and spending
a. True
b. False
Indicate whether the statement is true or false
True
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John fishes for a living. Last year, he sold $100,000 of fish. Bait, nets and other fishing supplies cost John $10,000 and he paid $40,000 in salaries to his helpers
Depreciation on his boat and other equipment, as calculated using IRS rules, was $15,000. What was John's profit as would be calculated by an accountant? A) $165,000 B) $100,000 C) $65,000 D) $35,000 E) None of the above answers is correct.
As Rainclouds Inc moves downward along its production possibilities frontier, illustrated in the figure above, the opportunity cost of a raincoat ________
A) decreases B) depends on the initial quantity produced C) increases D) remains the same
To affect the market outcome, a price floor
A) must be set above the price ceiling. B) must be set above the legal price. C) must be set above the black market price. D) must be set above the equilibrium price.
Assume that the riskiest individuals in a given population are the ones most likely to apply for health insurance. In this situation a provider of health insurance faces the problem of ________
A) moral hazard B) opportunity costs C) tertiary impedence D) adverse selection