Julia prepares tax returns and does bookkeeping. Last year her revenues from the tax and bookkeeping business were $150,000 . and her expenses for the business were $15,000 . When she started her tax and bookkeeping business, Julia gave up her supplemental job doing in-home pet sitting. She used to earn $10,000 per year from pet sitting. Assume that she incurred no costs for her pet sitting
business. Julia's accounting profits are
a. $160,000.
b. $150,000.
c. $135,000.
d. $125,000.
c
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Total surplus:
A. can never be negative.
B. is always zero in an efficient market.
C. can be negative when the market is not in equilibrium.
D. is greater than the sum of consumer and producer surplus.
The fact that more women have chosen to work as real wages rise is evidence that, for them
a. leisure is an inferior good. b. income and substitution effects of higher real wages work in the same direction. c. income and substitution effects of higher real wages may work in opposite directions. d. income and substitution effects may work in opposite directions but that the substitution effect is stronger.
An expectation of increased prices of a good in the future is likely to:
A. have no impact on current demand. B. increase current demand. C. decrease current demand. D. only affect seller's decisions.
As a holder of ________, you are entitled to a portion of the issuing party's profits.
A. a corporate bond B. a bank loan C. a government bond D. a share of common stock