Which of the following is likely to be an unreported economic activity?
A) the brokerage fees paid to a broker at Merrill Lynch
B) the purchase of shares of stock in Walgreen's Pharmacy
C) a 250,000 bonus paid to the CEO of a company
D) tips paid to a taxi driver
E) the minimum wage paid to a teenager working at a McDonald's
Question 2
As the price level rises relative to costs and the real wage rate falls, profits ________ and the number of firms in business ________.
A) decrease; increases
B) decrease; decreases
C) increase; decreases
D) do not change; do not change
E) increase; increases
