The wealthy have a ________ marginal propensity to consume.
A. more elastic
B. higher
C. lower
D. less elastic
Answer: C
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The real interest rate is calculated by subtracting inflation from the nominal interest rate
a. True b. False Indicate whether the statement is true or false
The greatest advantage of a corporation is
A) ease of setting up the business. B) the double taxation of dividends. C) separation of ownership and control of the business. D) limited liability.
In the foreign exchange market, the
A) supply of dollars decreases as the exchange rate increases and the quantity of dollars supplied does not change. B) quantity of dollars supplied increases as the exchange rate decreases and the supply of dollars does not change. C) quantity of dollars supplied increases as the exchange rate increases and the supply of dollars does not change. D) supply of dollars increases as the exchange rate increases and the quantity of dollars supplied does not change. E) both the quantity of dollars supplied and the supply of dollars increases as the exchange rate increases.
Suppose that a firm earned $500,000 in total revenue. At the same time, it incurred labor costs of $200,000; economic depreciation of $50,000; normal profit of $75,000; interest paid to the bank of $25,000; and used other factors of production that
cost $100,000. The economic profit earned by the firm equals A) $275,000. B) $175,000. C) $50,000. D) $200,000. E) $500,000.