Corrina was working as a waitress in an Italian restaurant making an annual income of $25,000 per year when she decided to start up her own catering business. Corrina used $10,000 of her savings that was earning 5 percent annual interest to establish her
business. After the first year she made an accounting profit of $20,000. Her economic profit was
A) -$5,550.
B) -$5,000.
C) $20,000.
D) $25,000.
Answer: A
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Which statement is false?
A. The 1990s was one of the most prosperous decades in the United States' history. B. The United States' economy reached its tenth year of steady expansion in the spring of 2001. C. Compared to other decades, the 1990s was a decade was unique in that it had strong economic growth with no recessions. D. At the end of the 1990s, the government was running budget surpluses.
The Big Mac index compares:
A. the cost of a Big Mac all over the world. B. the cost of a typical basket for consumers all over the world. C. typical food costs, as food is the largest component of all consumption baskets. D. typical food and energy costs across different locations.
The demand for a product is likely to be more elastic when
a. the share of the total budget spent on the product is small. b. more complementary products are available. c. the consumer has a short time to adjust to price changes. d. more good substitutes for the product are available.
As a result of GATT, tariff rates in developed countries have decreased from 40 percent in 1948 to less than 4 percent today.
Answer the following statement true (T) or false (F)