James used $250,000 from his savings account that paid an annual interest of 15% to purchase a hardware store. After one year, James sold the business for $320,000 . What is his economic profit?
a. $320,000
b. $70,000
c. $282,500
d. $32,500
d
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In July, market analysts predict that the price of gold will rise in August. What happens in the gold market in July, holding everything else constant?
A) The supply curve shifts to the right. B) The demand curve shifts to the left. C) The quantity demanded and the quantity supplied increase. D) The supply curve shifts to the left.
Because of differences in tax treatment, municipal bonds pay a higher interest rate than do corporate bonds
a. True b. False Indicate whether the statement is true or false
Which of the following statements does not help to explain why government drug interdiction increases drug-related crime?
a. The demand for illegal drugs is inelastic. b. Interdiction results in drug addicts having a greater need for quick cash. c. Interdiction results in an increase in the amount of money needed to buy the same amount of drugs. d. Government drug programs are more lenient now with drug offenders than they were in the 1980s.
In short-run equilibrium, it is always true that
A) quantity demanded of Real GDP = quantity supplied of Real GDP = Natural Real GDP. B) quantity demanded of Real GDP > quantity supplied of Real GDP. C) quantity demanded of Real GDP = quantity supplied of Real GDP. D) a and b E) There is not enough information to answer the question.