In the textbook model of endogenous growth, long-run output growth would decline if there were either a ________ in the saving rate or a ________ in the depreciation rate.
A. rise; fall
B. fall; fall
C. fall; rise
D. rise; rise
Answer: C
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Suppose that you and two friends have an opportunity to purchase a pizza restaurant. Each of you would put up $75,000 . The revenue from the restaurant is expected to remain $200,000 per year for the next several years
The costs (not including the opportunity costs of your investment) of operating the restaurant are expected to remain steady at $185,000 for the next several years. The current market rate of interest is 7 percent per year. Should you go in on this deal? Explain.
Historically, controlling who was able to vote was an important tool:
A. for those who wanted to keep other groups out of power. B. to discourage some from participating in policy making. C. to attract greater participation in the political system. D. for those seeking to create policy that was beneficial for all.
Jerome, the florist, sold 500 bridesmaid's bouquets in June. He estimates his costs that month were ATC = $10, AVC = $6, and MC = $9 . If he sold each bouquet at the constant market price of $9, Jerome
a. made an economic profit of $500 b. made a loss of $500 c. made an economic profit of $1,500 d. made a loss of $1,500 e. should have shut down in June
Based on the graphic for perfect competition versus monopoly, the change between the producer surplus of perfect competition and the producer surplus of a monopoly is ______.
a. a – b
b. a + b
c. b
d. –c