Christine is an artist who creates custom cookie jars. Her annual revenue from selling the cookie jars is $90,000 . The annual explicit costs of the materials used to make the cookie jars are $54,000 . Christine used $5,000 from her personal savings account to buy pottery tools for her business. The savings account paid 1% annual interest. Christine could earn $6,000 per year as a tax preparer
What is the annual economic profit of her cookie jar business?
a. $36,000
b. $35,950
c. $30,000
d. $29,950
d
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Dent 'n' Scratch Used Cars and Trucks employs 3 salesmen. Data for their sales last month are shown in this table: Cars Sold Trucks SoldLarry105Joe99Ralph312Based on last month's data, ________ has an absolute advantage in selling cars and ________ has an absolute advantage in selling trucks.
A. Joe; Joe B. Ralph; Larry C. Larry; Joe D. Larry; Ralph
When a country's nominal exchange rate depreciates, the price of
A) that country's goods abroad increases. B) that country's goods abroad decreases. C) foreign goods sold in the country decreases. D) that country's goods produced and sold at home decreases.
The assumption that wages change more slowly than prices implies that the
A) aggregate demand curve has a positive slope. B) aggregate demand curve has a negative slope. C) Phillips Curve has a negative slope. D) Phillips Curve has a positive slope.
If interest rates fall, the opportunity cost of spending money today rather than tomorrow
A. rises. B. falls. C. rises only if the prices of goods today rise. D. falls only if the prices of goods today fall.