Refer to Scenario 7.2 below to answer the question(s) that follow. SCENARIO 7.2: You are the owner and only employee of a company that sets odds for sporting events. Last year you earned a total revenue of $100,000. Your costs for rent and supplies were $50,000. To start this business you invested an amount of your own capital that could pay you a return of $20,000 a year. Refer to Scenario 7.2. Your economic profit last year was
A. -$40,000.
B. -$10,000.
C. $10,000.
D. $30,000.
Answer: D
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Use the aggregate expenditures model and the following values to answer the next question.AMPCIGT$3500.75$400$400$200Determine the change in the equilibrium level of consumption (find ?C) following a decrease in government spending from 400 to 300 (?G = -$100).
A. negative $400 B. positive $400 C. positive $300 D. negative $300
Use the following diagram to answer the next question.
Based on this diagram, we can say ________.
A. crowding out is limiting the effectiveness of expansionary monetary policy B. investment demand will not respond when interest rates change C. there is a liquidity trap D. monetary policy is likely to be pro-cyclical
Cost-benefit analysis is a tool that is used
A) only by businesses. B) only by individuals and businesses. C) only by governments. D) by individuals, businesses, and governments.
Downsizing may result in an increase in accounting costs
Indicate whether the statement is true or false