Among the following people, who earns a profit?
a. a construction worker who would work for $40 per hour but actually earns $50 per hour
b. a heart surgeon who earns $400,000 a year
c. an entrepreneur who earns $25,000 a year
d. a land owner who receives $600 per acre for the 1,000 acres he owns
e. a homemaker whose work is valued at $100,00 a year even though she earns $0
C
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Which of these is NOT one of the issues that makes it difficult for the Fed to choose the right course of action at the right time?
A. The Fed's incomplete and imperfect control of the money supply B. The quality of the data the Fed uses C. The time that it takes for the Fed to decide on a course of action D. The time it takes for Fed action to have an impact
What would happen in an economy if total planned production exceeded total planned real expenditures?
A) Inventories would be depleted, and firms would tend to lower prices. B) Inventories would accumulate, and firms would tend to lower prices. C) Inventories would be depleted, and firms would tend to raise prices. D) Inventories would accumulate, and firms would tend to raise prices.