The following is cost information for the Creamy Crisp Donut Company: Entrepreneur's potential earnings as a salaried worker = $50,000 Annual lease on building = $22,000 Annual revenue from operations = $380,000 Payments to workers = $120,000
Utilities (electricity, water, disposal) costs = $8,000 Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000 Entrepreneur's forgone interest on personal funds used to finance the business = $6,000 Refer to the data. Creamy Crisp's economic profit is:
A. $150,000.
B. $80,000.
C. $230,000.
D. $94,000.
Answer: D
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Using the information in the table above, depreciation equals
A) -$90 billion. B) $90 billion. C) -$70 billion. D) some amount that cannot be determined.
Behavioral economics under uncertainty documents that
A) people's behavior often differs from what standard expected utility theory predicts. B) people's behavior can change with their circumstances. C) people might put considerable weight on certain outcomes. D) All of the above.
If there is a shortage in the market for loanable funds, what happens to desired saving and desired investment as the interest rate moves to its equilibrium value?
a. desired saving and desired investment both fall b. desired saving and desired investment both rise c. desired saving falls and desired investment rises d. desired saving rises and desired investment falls
The Global Positioning System (GPS) is an example of a good that is both non-rival and excludable good.
A. True B. False C. Uncertain