Suppose a Firm Has an Annual Budget of $200,000 in Wages

question 22

Multiple Choice

Suppose a firm has an annual budget of $200,000 in wages and salaries,$75,000 in materials,$30,000 in new equipment,$20,000 in rented property,and $35,000 in interest costs on capital.The owner/manager does not choose to pay himself,but he could receive income of $90,000 by working elsewhere.The firm earns revenues of $360,000 per year.What are the annual implicit costs for the firm described above?

• A)$450,000.
• B)$160,000.
• C)$90,000.
• D)$360,000.

Analyze the impact of changes in real GDP and the GDP deflator on overall economic performance.

Develop the ability to calculate the change in real GDP given changes in nominal GDP and the GDP deflator.

Grasp the meaning and importance of GDP as a measure of economic output and performance.

Understand the fundamental human need to belong and its effects on behavior and mental states.

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Definitions:

Micro-management

An excessive control or attention on minor details, often in a managerial context, limiting the autonomy of employees.

Theory Y Manager

A management style that assumes employees are self-motivated, seek responsibility, and can solve work problems creatively.