Bob works for a firm that produces umbrellas. He receives payment for his labor. The firm wants to expand but lacks the capital needed for the expansion. Bob, a person of some means, provides the capital. What payment(s) does the firm now make to Bob?
a. rental payment for the loan of capital and wages for labor
b. wages for labor and profit for entrepreneurship in providing capital
c. interest for Bob's entrepreneurship in providing capital
d. profit for Bob's entrepreneurship in providing capital
e. wages for labor and interest payments for providing capital
E
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If the firm in the figure above is unregulated, it will produce
A) 5 units. B) 20 units. C) 30 units. D) 40 units.
________ is maximized in a competitive market when marginal benefit equals marginal cost
A) Selling price B) Deadweight loss C) Marginal profit D) Economic surplus
In the past twenty years or so, all major U.S. trade legislation has typically included all of the following except
A) negotiating authority for the President to try to achieve new trade agreements. B) new U.S. trade barriers in the form of dumping or countervailing duty laws. C) new U.S. trade barriers in the form of uniformly higher tariffs on all goods. D) expanded laws calling on the President and USTR to investigate and challenge unfair trading practices of foreign countries.
Socialism is an economic system characterized by:
a. private ownership of resources and market decision-making. b. government ownership of resources and centralized decision-making. c. cooperation, sharing, and little central government. d. a complex structure of rules and traditions that dictates decision-making.