James used $200,000 from his savings account that paid an annual interest of 10% to purchase a hardware store. After one year, James sold the business for 300,000 . His accounting profit is:
a. $300,000
b. $100,000
c. $80,000
d. $20,000
b
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Figure 6.1In Figure 6.1, the price of the good is $20 and the shaded area represents:
A. producer surplus. B. consumer surplus. C. market equilibrium. D. a price ceiling.
Bargaining between the management of a company and the management of a union is
A) a closed shop. B) a bilateral monopoly. C) a craft union. D) collective bargaining.
Average fixed cost for an information product would
A. remain constant as quantity increases. B. decrease constantly as quantity increases. C. increase constantly as quantity increases. D. first decrease and then increase as quantity increases.
The process of bundling loans together and buying and selling these bundles in a secondary financial market is called
A) open market operations. B) securitization. C) fractional reserve lending. D) seigniorage.