The economy experiences an increase in the price level and a decrease in real domestic output. Which is a likely explanation?
A. Productivity has increased.
B. Excess capacity has decreased.
C. Input prices have increased.
D. Government regulations have been reduced.
Answer: C
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The demand for cars in a certain country is given by: D = 20,000 - P, where P is the price of a car. Supply by domestic car producers is: S = 5,000 + 0.5P.If this economy is open to trade, and the world price of a car is $6,000, the domestic quantity demanded will be ________ and quantity supplied will be ________.
A. 14,000; 8,000 B. 12,000; 10,000 C. 12,000; 8,000 D. 8,000; 14,000
A change in consumption spending caused by income changes is ________ change in spending, and a change in government spending that occurs to improve roads and bridges is ________ change in spending
A) an autonomous; an induced B) an induced; an autonomous C) a contractionary; an expansionary D) an expansionary; a contractionary
The difference between a sole proprietorship and a partnership is
a. a partnership is a separate legal being apart from its owners b. ability to issue stock c. limited liability d. the distribution of dividends e. the number of owners
Imagine Tom's annual salary as an assistant store manager is $30,000, he owns a building that rents for $10,000 yearly, and his financial assets generate $1,000 per year in interest. One day, after deciding to be his own boss, he quits his job, evicts his tenants, and uses his financial assets to establish a bicycle repair shop. To run the business, he outlays $15,000 in cash to cover all the costs involved with running the business, and earns revenues of $50,000. Which of the following statements is true?
A. Tom experiences an economic loss of $6000. B. Tom has an opportunity cost of $41,000. C. Tom earns an accounting profit of $35,000. D. All of these are true.