Suppose Lando Calrissian owns a smuggling business whose total revenue is $30,000 per month. The accompanying table shows Lando's monthly expenses. If Lando weren't a smuggler, he would earn $6,000 per month working for the Rebel Alliance. Apart from pay, Lando is indifferent between working as a smuggler and working for the Rebel Alliance.Fuel$4,000Maintenance$12,000Weapons$6,000Bribes$3,000 What is Lando's accounting profit each month?
A. $5,000
B. ?$1,000
C. ?$5,000
D. $1,000
Answer: A
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Under the Bretton Woods system, participating countries
A) pegged their currencies to the U.S. dollar. B) maintained a fixed exchange rate with gold. C) allowed their currencies to float freely. D) pegged their values to the British pound.
Other things the same, the real exchange rate between American and French goods would be lower if
a. prices of French goods were higher, or the number of euros a dollar purchased was higher. b. prices of French goods were higher, or the number of euros a dollar purchased was lower. c. prices of French goods were lower, or the number of euros a dollar purchased was higher. d. prices of French goods were lower, or the number of euros a dollar purchased was lower.
Which one factor below does not influence how a resource should be allocated over time to maximize economic efficiency?
a. Guaranteeing sufficient supplies for future users b. The discount rate c. The future marginal net benefit curve d. The current marginal net benefit curve e. The supply of the resource
Assume that an industry is significantly affected by import competition from foreign suppliers. Taking this factor into account, it would mean that:
A. The Heyerdahl index would be significantly higher in that industry because there are more firms in the industry B. The industry is less concentrated than suggested by domestic concentration ratios C. There is a high degree of inter industry competition D. There is a low degree of inter industry competition