Refer to Scenario 7.4 below to answer the question(s) that follow.SCENARIO 7.4: You own and are the only employee of a company that sells custom embroidered pet sweaters. Last year your total revenue was $120,000. Your costs for equipment, rent, and supplies were $30,000. To start this business you invested an amount of your own capital that could pay you a $50,000 a year return.Refer to Scenario 7.4. A yearly normal return for your company would be
A. $40,000.
B. $50,000.
C. $70,000.
D. $90,000.
Answer: B
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If the Federal Reserve sells $100 of securities through a commercial bank when the reserve requirement is 10 percent, the maximum potential change in the money supply is
A) a $1,000 increase. B) a $1,000 decrease. C) a $100 decrease. D) a $100 increase.
When is the definition and enforcement of property rights especially difficult?
a. When many polluters harm a large group of people with the same pollutant. b. When a single polluter is harming a single person or entity. c. When land is owned by a corporation. d. When the benefits of prosecution are clear.
When a tax is imposed in a market, it will a. alter the behavior of buyers
b. alter the behavior of sellers. c. have no effect on the behavior or either buyers or sellers. d. affect the behavior of both buyers and sellers.
When the minimum wage is set below the market equilibrium wage, it does not affect the market.
Answer the following statement true (T) or false (F)