Aimee sells hand-embroidered dog apparel over the Internet. Her annual revenue is $128,000 per year, the explicit costs of her business are $42,000, and the opportunity costs of her business are $30,000. What are the implicit costs of her business?
A) $12,000
B) $30,000
C) $72,000
D) $86,000
Answer: B
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What is the leverage implied by the bank balance sheet listed below? ? Assets ? ? Liabilities & Net Worth ? Reserves $280,000 ? Checking Deposits $2,800,000 Loans Outstanding $2,920,000 ? ? ? Total $3,200,000 ? Net Worth ? ? ? ? Stockholders’ Equity $400,000 ? ? ? Total $3,200,000
A. 2-to-1 B. 7-to-1 C. 8-to-1 D. 10-to-1
After a binding price floor becomes effective, a
a. smaller quantity of the good is exchanged. b. a larger quantity of the good is demanded. c. a smaller quantity of the good is supplied. d. All of the above are correct.
A U.S. firm produces sweatshirts in the first quarter of 2010 and adds them to its inventory. In the second quarter of 2010 the firm sells the sweatshirts to consumers. In which quarter(s) does(do) these transactions raise consumption?
a. the first and the second b. the first but not the second c. the second but not the first d. neither the first nor the second
Which of the following statements about a trade bloc is accurate?
A. The gains from a trade bloc are shared equally by each member. B. A trade bloc may lower firms' costs by allowing them to exploit economies of scale. C. Increased competition within a trade bloc can result in higher commodity prices in the domestic markets of the member countries. D. A trade bloc can increase the opportunities for domestic business investments but usually repels foreign direct investments into the member countries.