A fishing boat owner brings 50,000 fish to market and the market price is $4 per fish. Her average variable cost of 50,000 fish is $1 and the fixed cost of the boat is $100,000 . What is her profit per fish?
a. $1.
b. $500.
c. $5,000.
d. $25,000.
e. $500,000.
a
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If orders exist in large volume, then the market has
A) depth. B) breadth. C) resiliency. D) None of the above.
Which of the following institutions is responsible for supervising the banking system of the United States?
a. The Federal Reserve System. b. The Open Market Committee. c. The U.S. Treasury. d. The Federal Deposit Insurance Corporation.
The basic difference between a tariff and quota is that:
a. quota can be imposed both on imports and exports whereas a tariff can be imposed only on imports. b. quota yields revenue to the government whereas tariff does not yield any revenue. c. tariff reduces the import of the goods with greater certainty than quota as the amount of import restricted by quota depends on the price elasticity of demand for importable. d. tariff is a quantitative restriction on imports whereas quota is an import duty. e. a tariff raises the price of the product only in the domestic market whereas with a quota, both domestic and foreign producers receive a higher price.
By what mechanism does the economy always return to full employment after a demand shock in the short run?
a. Wages automatically adjust themselves. b. The interest rate automatically adjusts itself. c. Prices automatically adjust themselves. d. Taxes automatically adjust themselves. e. Rents automatically adjust themselves.