If a firm faces an average total cost of $100 and sells its product for $115, how much profit does it make when it sells 20 units of the product?
A) $200
B) $115
C) $300
D) $800
C
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Out of the various types of M1 (demand deposits, coins and bank notes), only demand deposits
(a) can be used to generate loans by banks. (b) serve as a medium of exchange. (c) serve as a unit of account. (d) store value.
Alan is offered a gamble. Heads he wins $100, tails he wins $20 . If the game costs $60, would he play?
a. Yes he would play since the expected value is equal to the price of the play b. Yes he would play since the expected value of the play is higher than the price of the play c. No he would not play since the price of the play is higher than the expected value d. No he would not play since this is a fair bet and he is not being offered any risk premium
Compared to coffee, we would expect the cross elasticity of demand for:
A. tea to be negative, but positive for cream. B. tea to be positive, but negative for cream. C. both tea and cream to be negative. D. both tea and cream to be positive.
When federal government spending exceeds tax revenues, the federal government runs a budget surplus
Indicate whether the statement is true or false