Ed Van Zaig is considering opening a sushi bar. To do so, he would have to quit his current job, which pays $20,000 a year, and take over a store building he owns and currently rents for $6,000 a year. His costs at the sushi bar would be $50,000 for food and $2,000 for gas and electricity. What is the minimum revenue he must earn per year in order for it to be worth his while to open his sushi
bar?
a. $26,000
b. $66,000
c. $78,000
d. $52,000
e. $72,000
C
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Currency traders expect the dollar to depreciate. What impact will this have on equilibrium in the foreign exchange market?
A) The dollar will appreciate, and the equilibrium quantity of dollars will increase. B) The dollar will depreciate, and the equilibrium quantity of dollars exchanged will decrease. C) The dollar will appreciate, and the equilibrium quantity of dollars will decrease. D) The dollar will depreciate, and the change in the equilibrium quantity of dollars exchanged cannot be determined.
A major side-effect of a stimulative fiscal policy is that it will
A) discriminate in favor of housing. B) crowd out private expenditures. C) increase the natural rate of unemployment. D) permanently raise the rate of inflation.
An import quota is a
a. tax on imports b. legal limit on the amount of a specific good that can be imported into a particular country c. tax on import quantities above the legal limit d. way to increase tariff revenues e. legal incentive for members of GATT to increase their exports of a particular good
The Governors of the Federal Reserve System are appointed by the:
A. President of the United States. B. Board of Directors of the Reserve Bank from their home district. C. Chairman of the Federal Reserve System. D. member banks from their home district.