If a firm makes normal profit, the entrepreneur must earn a wage that
a. is at least as much as he can earn elsewhere
b. must be less than he can earn elsewhere
c. equals the economic profit generated by the firm
d. lowers the opportunity cost of finding alternative work
e. is enough for him to live on
A
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In the IS-LM-BP model, when the price variable decreases, the
A) LM curve shifts out. B) IS curve shifts out. C) LM curve shifts in. D) BP curve shifts up.
Discount rates are __________ every two weeks by the directors of each regional Federal Reserve Bank but are __________ by the Board of Governors
A) determined; established B) established; determined C) recommended; established D) determined; recommended
The present value of any future sum of money is the amount that would be needed today, at current interest rates, to produce that future sum
a. True b. False Indicate whether the statement is true or false
The difference between accounting profit and economic profit relates to
a. the manner in which revenues are defined. b. how marginal revenue is calculated. c. the manner in which costs are defined. d. the price of the good in the market.