Refer to Scenario 7.6 below to answer the question(s) that follow. SCENARIO 7.6: Upon graduating with an accounting degree, you open your own accounting firm of which you and your assistant are the only employees. To start the firm you passed on a job offer with a large accounting firm that offered you a salary of $50,000 annually. Last year you earned a total revenue of $120,000. Rent and supplies last year were $50,000. Your assistant's salary is $30,000 annually.Refer to Scenario 7.6. Your annual operating profit is
A. -$10,000.
B. $40,000.
C. $70,000.
D. $80,000.
Answer: B
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The divergence between money costs and opportunity costs will be greatest in which of the following situations?
A. A university purchases 100 computers. B. A university employs people from town in the cafeteria (the other alternative is to work at a paper mill). C. A university employs otherwise unemployed teenagers to paint crosswalks and curbs. D. A university replaces the roof of the fine arts building.
When quantity supplied is not very responsive to a change in price, supply is
A) elastic. B) unit-elastic. C) inelastic. D) income sensitive.
Why might two presidential candidates appear to have very similar opinions during an election year even if they come from different parties?
a. They aim to please special-interest groups. b. They are logrolling. c. They try to appeal to the median voter. d. Republicans and Democrats usually agree on most issues. e. They don't wish to appear rationally ignorant.
In a fixed exchange rate system
A. market forces play a role in determining the fixed value of a currency. B. a central bank affects the value of a currency by changing its foreign exchange reserves. C. the International Monetary Fund determines exchange rates. D. market forces and the country's stock of gold determine its exchange rate.