Sam quits his job as an airline pilot and opens his own pilot training school. He was earning $40,000 as a pilot. He withdraws $10,000 from his savings where he was earning 6 percent interest and uses the money in his new business. He uses a building he owns as a hangar that he could have rented out for $5,000 per year. He rents a computer for $1,200, buys office supplies for $500, rents an
airplane for $6,000 . pays $1,300 for fuel and maintenance, and hires one worker for $30,000 . Sam's total revenue from pilot training classes equaled $90,400 . Sam's implicit costs for this year are equal to
a. $84,400
b. $39,000
c. $55,000
d. $45,600
e. $40,000
D
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Real business cycle theory focuses on factors affecting
A. aggregate demand. B. the velocity of money. C. aggregate supply. D. consumer spending.
Research supporting the new Keynesian model finds that prices are ________
A) slow to adjust to aggregate demand shocks B) changed very frequently C) changed only infrequently D) not as flexible as wages
The European subjugation or displacement of Native Americans from their lands
(a) was justified largely on the grounds that "might makes right." (b) was justified largely on the grounds of the "divine right of kings." (c) derived from the Christian belief of a right of conquest over non-Christian people. (d) was none of the above.
In _________ each person makes concessions giving in a little in order to gain a valued settlement or outcome such as harmony
a. Assimilation b. Compromise c. Valuation d. Socialization