A young chef is considering opening his own 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 that he owns and currently rents to his brother for $6,000 a year. His expenses at the sushi bar would be $50,000 for food and $2,000 for gas and electricity. What is the sum of his explicit costs?

If the economy has an MPC of 0.8, by how much will a $50 billion increase in government purchases increase GDP? By how much will a $50 billion increase in taxes decrease GDP?

What will be an ideal response?

When top managers of all four major airlines publicly stated that they intended to undertake only modest increases in capacity by buying additional planes or flying additional routes, the Department of Justice

A) brought charges against the airlines for collusion. B) stated that since this was an issue of capacity and not price, no collusion could have taken place. C) forced the airlines to increase capacity and lower prices. D) decided there was not enough evidence to charge the airlines with collusion.