Bill is an economics professor who earns $37,000 teaching but decides to leave and fulfill his dream of catering barbecues. During his year of barbecuing he earned total revenue of $60,000. He spent $30,000 on food and supplies
He also paid his wife $10,000 to help serve food. The normal profit for an entrepreneur running a barbecue business is $3,000. Bill also rented an industrial grill/fry truck for $12,000. Bill had an economic A) profit of $20,000.
B) loss of -$32,000.
C) loss of -$42,000.
D) profit of $28,000.
E) profit of zero.
B
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A mixed enterprise is one
A) where the government has significant ownership in a private company. B) in which the company has more than one legal structure, such as limited liability and sole proprietorship. C) that combines for-profit activities with education. D) that has both for-profit and non-profit operations.
Which of the following policies would be most likely to reduce the rate of inflation?
A. sale of government bonds by the Federal Reserve B. a reduction in the discount rate C. an increase in the size of the federal budget deficit D. a reduction in the required reserves imposed on the banking system
Economic analysis is used
A) only by instructors and students in economics to understand the world. B) only by business people to raise profits. C) only by policy makers to make policy decisions. D) in all decision making.
The price of house paint, a normal good, has gone up. This change can be shown graphically as a:
A. movement along the demand curve to the left. B. shift in the demand curve to the left. C. shift in the demand curve to the right. D. movement along the demand curve to the right.