Sheila's Sports Shop is a very popular sporting goods store, which has a yearly revenue of $600,000. Sheila runs the business herself
Her alternative employment options are to be a college swimming coach for $50,000 per year or a construction worker for $40,000 per year. Sheila spends $230,000 purchasing goods for resale to her customers. She also has four employees, who each earn $25,000 per year. Sheila owns the building that her Sports Shop is housed in and she could have rented it out for $20,000 per year. Sheila's costs for the resources that she supplies to the business equal A) $70,000 per year.
B) $90,000 per year.
C) $0 per year.
D) $330,000 per year.
A
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Vicarious consumption refers to the notion that
a. individuals have a sense of obligation to preserve the environment for future generations b. people gain utility knowing that others receive gains from an environmental good c. individuals gain from directly consuming the services generated by an environmental resource d. natural resources have intrinsic value e. none of the above
Recall the Application about the effects of increasing state level Earned Income Tax Credit (EITC) on child health in the United States to answer the following question(s).Recall the Application. How does EITC affect government health expenditures?
A. EITC raises private insurance coverage, causing a corresponding decrease in public health insurance expenditures in Medicaid and Children's Health Insurance Program (CHIP). B. EITC has no effect on public health insurance expenditures in Medicaid and Children's Health Insurance Program (CHIP). C. EITC raises private insurance coverage and a similar increase in public health insurance expenditures in Medicaid and Children's Health Insurance Program (CHIP). D. EITC lowers private insurance coverage, causing a corresponding increase in public health insurance expenditures in Medicaid and Children's Health Insurance Program (CHIP).
Which of the following will NOT cause market supply to increase?
A. an increase in the costs of resources used to produce the product B. a decrease in labor costs C. a change in technology which allows a larger level of production at every price D. an increase in the number of firms supplying the product in the market
Suppose the price elasticity of demand for cigarettes is -0.4. The FDA decides to regulate tobacco production, which increases the price of cigarettes and causes the quantity of cigarettes demanded to decrease by 25 percent. What is the percentage
increase in price which would lead to the 25 percent decrease in quantity demanded? If the price elasticity was -4, what would be the percentage increase in price? What will be an ideal response?