Refer to Scenario 7.1 below to answer the question(s) that follow. SCENARIO 7.1: You are the owner and only employee of a company that writes computer software that is used by gamblers to collect sports data. Last year you earned a total revenue of $90,000. Your costs for equipment, rent, and supplies were $60,000. To start this business you invested an amount of your own capital that could pay you a return of $40,000 a year. Refer to Scenario 7.1. Your accounting profit last year was
A. $10,000.
B. $30,000.
C. $50,000.
D. $60,000.
Answer: B
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Other things remaining the same, if the quantity of money increases by a given percentage, then in the long run the ________ by the same percentage
A) real interest rate rises B) price level rises C) nominal interest rate falls D) price level falls E) real interest rate falls
A lower price level combined with a decrease in real GDP occurs when the
A) short-run aggregate supply curve shifts rightward. B) short-run aggregate supply curve shifts leftward. C) aggregate demand curve shifts rightward. D) aggregate demand curve shifts leftward.
The equilibrium of this game indicates
a. Self-interest can sometimes lead to sub-optimal outcomes b. Rationality can sometimes lead to inefficient outcomes c. All of the above d. None of the above
If producing a soccer ball costs Jake $5, and he sells it for $40, his producer surplus is $35
a. True b. False Indicate whether the statement is true or false