John fishes for a living. Last year, he sold $100,000 of fish. Bait, nets and other fishing supplies cost John $10,000 and he paid $40,000 in salaries to his helpers
Depreciation on his boat and other equipment, as calculated using IRS rules, was $15,000. What was John's profit as would be calculated by an accountant? A) $165,000
B) $100,000
C) $65,000
D) $35,000
E) None of the above answers is correct.
D
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The unemployment rate is the number of people unemployed divided by the
A) number of people employed, then multiplied by 100. B) working-age population, then multiplied by 100. C) labor force, then multiplied by 100. D) labor force participation rate, then multiplied by the population. E) population, then multiplied by 100.
Economic profit is defined as
a. price minus the sum of average fixed and marginal cost b. total revenue minus total implicit cost c. total revenue minus the average total cost d. total revenue minus the sum of implicit and explicit costs e. consumer surplus minus total explicit cost
When does a higher wage rate lead to an increase in the number of work hours supplied by laborers?
a. Always. b. When the substitution effect outweighs the income effect. c. When the income effect outweighs the substitution effect. d. Never.
Suppose the economy is self-regulating, the price level is 150, the quantity demanded of Real GDP and the quantity supplied of Real GDP in the short run both equal $4.3 trillion, and the quantity supplied of Real GDP in the long run is $4.1 trillion. Given all of this information, we can conclude that the economy ____________ in short run equilibrium, and that the price level in long run
equilibrium will be _____________ than 150. A) is not; less B) is; more C) is; less D) is not; more