Corrina was working as a waitress in an Italian restaurant making an annual income of $25,000 per year when she decided to start up her own catering business. Corrina used $10,000 of her savings that was earning 5 percent annual interest to establish her business. After the first year she made an accounting profit of $20,000. Her economic profit was
A. -$5,000.
B. $20,000.
C. -$5,500.
D. $25,000.
Answer: C
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In 2012, which of the following countries had the highest share of investment spending in GDP?
A) China B) France C) the United States D) Germany
Evidence suggests that financial deepening is of greatest benefit to ________
A) industries that are highly dependent on external sources of funds B) family-owned enterprises C) established firms, rather than new firms D) child workers
In the short run, a firm will eventually experience rising per-unit costs because of:
a. economies of scale. b. diseconomies of scale. c. the law of supply. d. the law of diminishing returns.
If the price elasticity of demand for a good is 2.0, then a 10 percent increase in price results in a
a. 0.2 percent decrease in the quantity demanded. b. 5 percent decrease in the quantity demanded. c. 20 percent decrease in the quantity demanded. d. 40 percent decrease in the quantity demanded.