Refer to Scenario 7.4 below to answer the question(s) that follow.SCENARIO 7.4: You own and are the only employee of a company that sells custom embroidered pet sweaters. Last year your total revenue was $120,000. Your costs for equipment, rent, and supplies were $30,000. To start this business you invested an amount of your own capital that could pay you a $50,000 a year return.Refer to Scenario 7.4. During the year your economic costs were
A. $30,000.
B. $50,000.
C. $80,000.
D. $120,000.
Answer: C
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The underlying reason why gasoline prices at neighboring stations are usually identical is that
A. these operators are usually friends and benefit from the other's presence. B. collusion is prevalent in the energy sector. C. because under oligopoly, it can be in each firms best interest to independently charge a price equal to their competition's price. D. collusion is legal in the energy sector.
When banks hold a large amount of excess reserves, which of the following tools would the Fed most likely use when it wants to increase the interest rate?
A. raising the discount rate B. raising the reserve requirement C. making an open market purchase D. raising the interest rate it pays to banks on their reserves
The economy was expanding during all of the years that I was a student, but as soon as I graduated, the economy contracted. Therefore, the labor market was waiting until I started looking for a job to contract. This statement is an example of the
A. ceteris paribus fallacy. B. fallacy of logic. C. post hoc, ergo propter hoc fallacy. D. fallacy of inductive reasoning.
Refer to the information provided in Figure 8.9 below to answer the question(s) that follow. 
Figure 8.9
Refer to Figure 8.9. This farmer's ________ level of output is 500 units of output.
A. loss-minimizing B. profit-maximizing C. break-even D. shut-down