Scott used $4,000,000 from his savings account that paid an annual interest of 5% and a $60,000 loan at an annual interest rate of 5% to purchase a hardware store. After one year, Scott sold the business for $4,100,000 . His economic profits is:
a. $300,000
b. $100,000
c. $97000
d. None. He runs an economic loss of $103,000
d
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Monetary policy is conducted
A) only by the Federal Reserve. B) by the Federal Reserve and the President of the United States. C) by the Federal Reserve, the President of the United States, and Congress. D) by the Federal Reserve with veto power residing with the President of the United States.
The demand curve is a graphic representation of:
a. the relationship between price and quantity supplied of a certain good or service. b. the relationship between price and quantity demanded of a certain good or service. c. the relationship between supply and demand for a certain good or service. d. the relationship between productivity and quantity demanded of a certain good or service.
Profit is equal to: a. price times quantity
b. total cost times quantity. c. total cost minus total revenue. d. total revenue minus total cost.
As of 2009, what was the last year that U.S. experienced deflation?
A) 1933 B) 1955 C) 1973 D) 1991 E) 2001