Author Question: A firm produces a good and generates 5 million in receipts. Wages are 3 million, rent is 500,000, ... (Read 82 times)

cagreen833 · **on:** Jun 30, 2018

A firm produces a good and generates 5 million in receipts. Wages are 3 million, rent is 500,000, and interest payments are 1 million. Then

A) profits are 500,000, the cost of production is 4.5 million, and households receive income equal to 4.5 million.
B) profits are 500,000, the cost of production is 5 million, and households receive income equal to 4.5 million.
C) profits are 500,000, the cost of production is 5 million, and households receive income equal to 3.5 million.
D) profits are 500,000, the cost of production is 5 million, and households receive income equal to 5 million.

Question 2

The population of a small town is 5,000. There are 4,000 people in the labor force, and 3,000 people are employed. The unemployment rate equals

A) 25 percent.
B) 60 percent.
C) 75 percent.
D) an undetermined amount given the lack of information.