Refer to Scenario 7.3 below to answer the question(s) that follow. SCENARIO 7.3: Upon graduating with an accounting degree, you open your own accounting firm of which you are the sole employee. To start the firm you passed on a job offer with a large accounting firm that offered you a salary of $60,000 annually. Last year you earned a total revenue of $100,000. Rent and supplies last year were $50,000. Refer to Scenario 7.3. Your annual economic costs are
A. $0.
B. $50,000.
C. $60,000.
D. $110,000.
Answer: D
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A) direct; downward B) direct; upward C) inverse; downward D) inverse; upward
Which of the following is not an example of a negative externality?
A. noise created by commercial aircraft B. clearnup costs for an oil spill C. a computer company's costs of raw materials D. congestion and delays caused by traffic jams
Which of the following is NOT a regional trade agreement currently (2014) being considered?
a. the Trans-Pacific Partnership b. the Trans-Atlantic Trade and Investment Partnership c. the North American Free Trade Area d. the Europe-Japan Free Trade Area
Suppose the federal funds rate is 5 percent. If the Fed decides to decrease the target for the federal funds rate from 5 percent to 4 percent, it could take:
A. a defensive action and raise reserve requirements. B. an offensive action and reduce reserve requirements. C. an offensive action and raise reserve requirements. D. a defensive action and reduce reserve requirements.