A physician who laid off her nurse and receptionist and performed their tasks herself would probably
A) decrease her accounting profit but increase her economic profit.
B) decrease her profit from the economist's point of view even if she increased her accounting profit.
C) increase both her accounting and economic profit if her practice was a busy one.
D) wind up with lower labor costs unless the layoff greatly increased the demand for her professional services.
E) work more efficiently in order to get everything done.
Question 2
Suppose the annual rate of interest is r. Which of the following statements is then true of the future value of 1,000 for a time of T years?
A) Irrespective of whether the sum of 1,000 is borrowed or lent, the future value in both cases will equal (1 - r)T (1,000).
B) Irrespective of whether the sum of 1,000 is borrowed or lent, the future value in both cases will equal (1 + r)T (1,000).
C) If 1,000 is borrowed, the future value will equal (1 + r)T (1,000), but if it is lent out, the future value will equal (1 - r)T 1,000.
D) If 1,000 is borrowed, the future value will equal (1 - r)T (1,000), but if it is lent out, the future value will equal (1+ r)T 1,000.
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