Refer to Scenario 7.3 below to answer the question(s) that follow. SCENARIO 7.3: Upon graduating with an accounting degree, you open your own accounting firm of which you are the sole employee. To start the firm you passed on a job offer with a large accounting firm that offered you a salary of $60,000 annually. Last year you earned a total revenue of $100,000. Rent and supplies last year were $50,000. Refer to Scenario 7.3. Your annual economic profit is
A. -$10,000.
B. $40,000.
C. $50,000.
D. $100,000.
Answer: A
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What do structural reform policies emphasize?
What will be an ideal response?
Figure 10-3
In Figure 10-3, we would expect the aggregate supply curve in graph (b) to eventually
a.
shift to the right, eliminating the recessionary gap.
b.
shift to the left, eliminating the inflationary gap.
c.
become steeper in the upper portion, eliminating the inflationary gap.
d.
become flatter in the upper portion, eliminating the recessionary gap.
A belief that high-tech companies would be highly profitable led to the boom in Internet companies in the 1990s, which is known as a(n):
a. investment shock. b. investment boom. c. technology surge. d. technology reversal.
The fact that snow cones sales fall when snow accumulated from the sky suggests that snow cones sales and snow on the ground are
A. both directly correlated and inversely correlated. B. neither directly correlated nor inversely correlated. C. directly correlated. D. inversely correlated.