Modern economics as a field of study is usually thought to have begun with which of the following
What will be an ideal response?
Adam Smith and the writing of The Wealth of Nations.
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An individual holds $10,000 in a non-interest-earning checking account, and the overall price level rises significantly. Other things being constant, we would expect
A) the individual's real wealth to decrease and consumption to decline. B) no change in the individual's real wealth but a decline in real national product. C) the individual's stock of real wealth to decrease but real national income to increase. D) the individual's wealth to increase.
The federal government has a Constitutional requirement to operate a balanced budget each fiscal year
Indicate whether the statement is true or false
X-inefficiency refers to the situation in which:
A) highly competitive firms have less incentive to minimize their costs of production than other firms because the highly competitive firms have almost no chance to earn above-average profits. B) firms are unable to minimize their costs of production because there is no potential for input substitution. C) firms that use labor-intensive production methods tend to be less efficient than firms that use capital-intensive production methods. D) firms with market power have less incentive to minimize their costs of production than more competitive firms.
Suppose a firm has an annual budget of $200,000 in wages and salaries, $75,000 in materials, $30,000 in new equipment, $20,000 in rented property, and $35,000 in interest costs on capital. The owner/manager does not choose to pay himself, but he could receive income of $90,000 by working elsewhere. The firm earns revenues of $360,000 per year. What is the accounting profit for the firm described above?
A. $0. B. -$90,000. C. $200,000. D. $90,000.