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Which of the following items are not considered resource costs even though they are counted as income paid to persons?
a. profits
b. wages
c. business transfer payments
d. government transfer payments
e. both c and d are correct
This might be interpreted as an upward shift in the consumption function. How does this shift affect investment also the interest rate.
Do some research on the Internet to determine what fiscal policy initiatives the U.S. government used to address the economic crisis of 2008-2009. Which initiatives seem to have been most effective?
Suppose you own a house in Mobile, AL. Your house is currently worth $200,000. Suppose there is a 5% chance that a good destroys your house, in which case it will be worth $0. You have $50,000 in your bank account. What is the expected value of your ..
A representative of the American clothing industry recently made the following statement: Workers in Asia often work in sweatshop conditions earning only pennies an hour. American workers are more productive and as a result earn higher wages. Is the ..
Consider a market where demand is d:p=24-Q and supply is s:p=2+Q. impose a specific tax t= $2 on each unit sold in the above market.
Show where or not above production function exhibits diminishing marginal productivity of labour. Determine nature of Return to Scale as exhibited by above production function.
If Amy spent her entire allowance, she could just afford 8 candy bars and 8 comic books a week. She could also just afford 10 candy bars and 4 comic books. The price of a candy bar is 50 cents. Illustrate her budget line with a diagram (be sure to la..
Because increased government spending or tax cuts cause higher government deficits, they also contribute to a rise in total planned expenditures and aggregate demand. Previously, the government operated with a balanced budget; however, recently, ther..
A forest owner in a developing country claims that he earns more m1y with carbon sequestration than with timber production.
Borrowing in the form of debt is riskier than borrowing in the form of equity. Explain why this is true.
If the expected future exchange rate rises, the currency's
Suppose that a security costs $1,500 today. A. Calculate the percentage return on the Security if the payoff to the security in one Year is $1,000, $1,500, $2,000, or $2,500
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