Suppose Winston's annual salary as an accountant is $60,000, and his financial assets generate $4,000 per year in interest. One day, after deciding to be his own boss, he quits his job and uses his financial assets to establish a consulting business, which he runs out of his home. To run the business, he outlays $8,000 in cash to cover all the costs involved with running the business, and earns revenues of $150,000. What are Winston's explicit costs?
A. $72,000
B. $12,000
C. $64,000
D. $8,000
Answer: D
You might also like to view...
If a country is trying to recover from a recent recession, it is unlikely their government officials will decide to ________ because it would ________
A) raise interest rates; decrease aggregate demand B) institute a tax cut; increase aggregate demand C) raise interest rates; increase aggregate demand D) increase taxes; increase aggregate demand E) lower interest rates; decrease aggregate demand
If transactions costs are low, private bargaining will always result in an efficient solution to the problem of externalities
Indicate whether the statement is true or false
Which is the most important category of Fed assets?
A) securities B) discount loans C) gold and SDR certificates D) cash items in the process of collection
Dumping refers to the practice of one country selling off its surplus goods in other countries
Indicate whether the statement is true or false