Harry's Hookahs incurs $700,000 per year in explicit costs and $500,000 in implicit costs. The company earns $1.4 million in revenues and has $3.7 million in net worth. Based on this information, what is the economic profit for Harry's Hookas?
A) $200,000 B) $700,000 C) $900,000 D) $1.1 million
A
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The transactions approach to measuring money relies on the role of money primarily as a
A) temporary store of value. B) standard of deferred payment. C) unit of account. D) medium of exchange.
The Snowshoe Inn in Vermont charges $259 per room during the winter ski season and $149 during the summer months. The number of rooms available and the operating costs for the inn remain constant throughout the year. What is indicated by these prices?
A. The demand curve shifts out in the summer. B. The demand curve shifts out during the winter months. C. The supply curve shift in during the summer. D. There is a decrease in demand during the winter.
Government is viewed in the economic way of thinking as many different people interacting on the basis of
A) fear of punishment rather than hope for reward. B) legal considerations rather than profitability. C) prevailing property rights. D) principles of cooperation rather than of competition. E) regard for the public interest rather than private interest.
What does GDP measure to avoid double-counting?
a. final goods and services b. intermediate goods and services c. net exports d. all sales of goods and services