The gross increases in retained earnings attributable to business activities are called

Social Security benefits are increased each year in proportion to the increase in the CPI, even though most economists believe that the CPI overstates actual inflation. a. True b. False

A decrease in resource prices will increase the incentive of users to purchase the resource. suppliers to provide more of the resource. firms to find and develop substitutes for the resource.

Suppose a large apartment complex is infested with cockroaches that have never been exposed to glucose-baited poison.

Reed Corporation reports 2017 sales of $415 million, income before income taxes of $122.3 million and tax expense of $35.9 million. If sales are projected to increase by 4% next year, projected tax expense for 2018 will be: A. $35.9 million B. $37.

Briefly explain the use of graphs as a way to represent economic relationships

Financial markets are important for bringing equilibrium to the loanable funds market, but do not affect the efficient allocation of scarce resources in the long-run. a. True b. False

Amanda is a 30% partner in the ACW Partnership with an outside basis of $22,000. ACW distributes land with a basis of $12,000 and fair value of $18,000 to Amanda in complete liquidation of her interest.

If profits are positive in the short run in a perfectly competitive industry, which of the following would you NOT expect to happen as the market moves to the long run? A. Each firm will decrease output. B. Profits of each firm will fall. C.

A surplus means a (n): a. situation where the current market price is too low. b. excess supply of the product at the current price. c. situation where the quantity supplied is less than the quantity demanded. d.

Brief Exercise 13-05 Pronghorn Inc.'s $11 par value common stock is actively traded at a market price of $14 per share. Pronghorn issues 5,900 shares to purchase land advertised for sale at $77,000.