Suppose a family-owned yogurt shop has $80,000 in total revenues, $36,000 in rent, and $20,000 in additional operating costs. The husband and wife work in the shop and pay no wages to themselves or others. The economic profits from the shop are
A) $24,000.
B) less than $24,000.
C) more than $24,000.
D) $80,000.
B
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To move along a production possibilities curve from one point to another requires additional resources
Indicate whether the statement is true or false
The possibility that someone can reap the benefits of being a free rider occurs
a. when negative externalities exist in the market b. only when the market is in equilibrium c. when positive externalities exist in the market d. only if government is willing to subsidize the market e. only if government actually produces the good, such as a highway
Which of the following statements is true of fiat money? a. Fiat money has to be backed by gold assets
b. Fiat money is not backed by any valuable asset. c. The intrinsic value of fiat money should always exceed its extrinsic value. d. The intrinsic value of fiat money should always be equal to its extrinsic value.
Refer to the following graph.
The marginal utility curve associated with this total utility curve is:
A. a flat line with a slope of zero. B. a downward-sloping curve. C. an upward-sloping curve. D. indeterminate.