Suppose that a small business takes in monthly revenue of $100,000. Labor, rental, energy, and other purchased input costs are $70,000. The owner/entrepreneur could earn $5,000 per month in another job, and the owner/entrepreneur could get a return of $5,000 each month if she sold her business and invested the net proceeds in a financial asset, such as a treasury bond. Which of the following correctly describes her monthly economic profit?
A. $90,000.
B. $80,000.
C. $25,000.
D. $20,000.
Answer: D
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Use the above table. The MFC of the 4th worker is
A) $5. B) $6.25. C) $25. D) $40.
Gross domestic product is the:
a. total market value of the final goods and services produced by an economy during a specific period of time. b. total value of all the goods and services produced in an economy plus the value of the goods and services imported minus the value of the goods and services exported. c. total market value of all final goods and services produced by the factors of production of an economy during a given time period minus depreciation. d. total quantity of all goods and services produced in an economy during a specific period of time.
Explain how banks create loans and how this process is impacted by the reserve requirement and excess reserves. Then, create a scenario that demonstrates how banks create money when they issue loans, being sure to include an initial deposit amount, a reserve requirement ratio, an excess reserve amount, and how much money can be created from a single transaction.
What will be an ideal response?
The additional benefit to a consumer from consuming one more unit of a good or service
A) is equal to economic surplus. B) is equal to marginal benefit. C) is equal to the opportunity cost of consuming the good or service. D) is equal to consumer surplus.