Sally owns a beauty shop that generates a total revenue of $90,000 per year. She pays her employees a total of $45,000 . pays $10,000 for rent, insurance, and utilities; and pays $15,000 for beauty supplies such as hair spray and shampoo. Sally is glad to have the shop, because her next best alternative is to work as a cafeteria attendant for a salary of $8,000 a year. From this we can conclude
that Sally
a. would earn more working at the cafeteria
b. makes an economic profit of $20,000
c. makes an economic profit of $12,000
d. has total explicit costs of $78,000
e. has total implicit costs of $12,000
C
Economics
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Black market transactions generally increase the deadweight losses created by restrictive government policies
Indicate whether the statement is true or false
Economics
Which of the following would be most likely to cause a reduction in current aggregate demand in the United States?
a. increased fear of a recession b. an increase in the expected rate of inflation c. a sharp increase in the value of stocks owned by Americans d. a rapid increase in the growth of income in Canada, Mexico, and Western Europe
Economics