An annual income statement from Quest Realty, Inc. is shown below:
During this year of operation, Quest Realty owned and occupied an office building in downtown Indianapolis. For this year, the building could have been leased to other businesses for $2,000,000 in lease income. Quest Realty also owned undeveloped land valued at $15,000,000. Owners of Quest Realty can earn a 14% rate of return annually on funds invested elsewhere.Total implicit costs of using owner-supplied resources for Quest Realty for this year are
A. $19,000,000
B. $41,000,000
C. $4,100,000
D. $38,200,000
E. none of the above
Answer: C
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________ believed that economic downturns would generally reverse themselves quickly without policy intervention.
A. Neither Keynes nor the classical macroeconomic theorists B. Keynes C. Classical macroeconomic theorists D. Both Keynes and the classical macroeconomic theorists
The government of Economica announces that it will purchase its farmers’ surplus of milk. From this announcement, you can infer that Economica has a
A. free market for milk. B. price ceiling above the equilibrium price for milk. C. price floor above the equilibrium price for milk. D. price floor below the equilibrium price for milk.
From before the financial crisis began in September of 2007 to when the crisis was over at the end of 2009, amount of Federal Reserve assets rose, leading to
A) a huge increase in the monetary base. B) a huge expansion of the money supply. C) an economic expansion. D) a high inflation.
The value of money
a. remains constant during periods of inflation. b. varies inversely with the general price level. c. varies directly with the general price level. d. varies indirectly with output.