You borrow $10,000 at an interest rate of 5% to open a snow cone stand. You will earn an economic profit if
A. the return on your investment is 5%.
B. the return on your investment is greater than 5%.
C. the return on your investment is between 0 and 5%.
D. the return on your investment is 10% or greater.
B. the return on your investment is greater than 5%.
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The Congressional Budget Office estimates that ________ of the increase in federal spending on Medicare and Medicaid over the next 75 years will be due to increases in the cost of providing health care
A) most B) very little C) all D) less than half
Refer to Table 2-20. Does either Japan or Thailand have an absolute advantage and if so, in what product?
A) Thailand has an absolute advantage in rice. B) Japan has an absolute advantage in rice. C) Japan has an absolute advantage in wristwatches. D) Thailand has an absolute advantage in both products.
Demand and supply in the wheat market are given by:
QD = 2000 - 1000 P and QS = -500 + 1000 P where Q is millions of bushels and P is price per bushel. a. Find the equilibrium price and quantity. b. Suppose that the government wishes to support farm income and thus sets a price floor of $1.50/bushel. Find the size of the farm surplus. c. What is the cost of this program to the government?
Technological innovations are not necessarily major scientific breakthroughs.
Answer the following statement true (T) or false (F)