Author Question: Suppose that a small business takes in monthly revenue of 100,000 . Labor, rental, energy, and other ... (Read 78 times)

serike · **on:** Jun 30, 2018

Suppose that a small business takes in monthly revenue of 100,000 . Labor, rental, energy, and other purchased input costs are 70,000 . The owner/entrepreneur could earn 5,000 per month in another job, and the owner/entrepreneur could get a return of 5,000 each month if she sold her business and invested the net proceeds in a financial asset, such as a treasury bond. Which of the following correctly describes her monthly economic profit?
a. 100,000.
b. 90,000.
c. 70,000.
d. 30,000.
e. 20,000.

Question 2

Identify an example of a flow variable.
a. The volume of the federal government's debt
b. The population of a country in a particular year
c. The total amount of an individual's wealth
d. The amount of sales tax collected per year
e. The total amount of unemployment in an economy