Jennifer owns a pig farm near Salina, Kansas. Last year she earned $39,000 in total revenue while incurring $38,000 in explicit costs. She could have earned $27,000 as a teacher in Salina. These are all her revenue and costs
Therefore Jennifer earned an A) accounting profit of $1,000 but incurred an economic loss of $26,000.
B) accounting profit of $1,000 but incurred an economic loss of $65,000.
C) accounting profit of $1,000 but incurred an economic loss of $38,000.
D) economic profit of $1,000.
E) None of the above answers is correct.
A
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Refer to Table 2-11. If the two countries specialize and trade, who should export wheat?
A) South Korea B) There is no basis for trade between the two countries. C) China D) They should both be exporting wheat.
Figure 8-5
In Figure 8-5, profits are maximized at output of
A. 10 B. 35 C. 50 D. 60
You decide to donate $5 to Jerry's Kids at the grocery store checkout, and get to sign your name to a shamrock and hang it in their window. This is an example of the economic concept of:
A. marginal utility. B. altruism. C. reciprocity. D. selfishness.
Refer to the table above. If there is no statistical discrepancy, the capital and financial account balance equals
A) -$200 billion.
B) +$200 billion.
C) -$220 billion.
D) +$220 billion.
E) +$20 billion.