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.Economic profit is
A. $41,000,000
B. $19,000,000
C. $21,800,000
D. $38,200,000
Answer: B
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A measure of overall prices at a particular point in time is called:
A. inflation. B. a relative price. C. the price level. D. a real price.
How are the fundamental economic decisions determined in Canada?
A) These decisions are made by the country's elders who have had much experience in answering these questions. B) The United Nations decides because Canada is a developing economy. C) Individuals, firms, and the government interact in a market to make these economic decisions. D) The government decides because Canada is a centrally planned economy.
If the price level falls as real GDP decreases, the multiplier effects of any given change in aggregate expenditures are smaller than they would be if the price level remained constant
a. True b. False Indicate whether the statement is true or false
Abraham drinks Mountain Dew. He can buy as many cans of Mountain Dew as he wishes at a price of $0.55 per can. On a particular day, he is willing to pay $0.95 for the first can, $0.80 for the second can, $0.60 for the third can, and $0.40 for the fourth can. Assume Abraham is rational in deciding how many cans to buy. His consumer surplus is
a. $0.50. b. $0.60. c. $0.70. d. $1.00.