About 40 jewls of power in the other direction
Answer and Explanation:
The computations are shown below:
1. For annual implicit cost
= Earning annual salary + earned annual interest
= $80,000 + $500
= $80,500
2. For Annual accounting cost
= Explicit cost
= Direct expenses
= Office rent + rent of equipment + supplies + utilities + salary of a book keeper
= $15,000 + $3,000 + $1,000 + $1,200 + $35,000
= $55,200
3. For economic cost
= Accounting cost + implicit cost
= $55,200 + $80,500
= $135,700
4. For revenue
= Accounting profit + profit
= $55,200 + $50,000
= $105,200
5. For revenue
= Economic cost + profit
= $135,700 + $50,000
= $185,700
Answer: b. increases Canadian net exports, and decreases U.S. net capital outflow.
Explanation:
Based on the information given, the net export of Canada will increase. Net exports measures the total trade of a country. It's the difference between the country's export and its import.
Since the U.S bakery is buying wheat from Canada, it means the export will increase thereby increasing the country net export. On the other hand, there's a reduction in the net capital outflow of the United States.
Therefore, the correct option is B
Answer:
False
Explanation:
Binding minimum wage refers to the minimum wage that not just prevent the labor market from reaching equilibrium but also exceed the wage equilibrium in the market. If the minimum wage is set higher than the equilibrium, most people in the market have to move the wage equilibrium up.
Given that economists call a minimum wage that prevents the labor market from reaching equilibrium a binding minimum wage.
So, a minimum wage below $10 per hour is a binding minimum wage in this market.
Hence, the given statement is false.
