Bev is opening her own court-reporting business. She financed the business by withdrawing money from her personal savings account. When she closed the account, the bank representative mentioned that she would have earned $300 in interest next year. If Bev hadn't opened her own business, she would have earned a salary of $25,000 . In her first year, Bev's revenues were $30,000 . and she spent
$1,000 on materials and supplies. Which of the following statements is correct?
a. Bev's total explicit costs are $26,300.
b. Bev's total implicit costs are $300.
c. Bev's accounting profits exceed her economic profits by $300.
d. Bev's economic profit is $3,700.
d
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Without an accepted medium of exchange, people
A) have to specialize in one area of production. B) have to resort to barter in order to exchange goods and services. C) have to rely on gold or silver in order to exchange goods and services. D) can efficiently obtain goods and services.
Which of the following statements about positive economic analysis is false?
A) There is much more disagreement among economists over normative economic analysis than over positive economic analysis. B) Positive analysis uses an economic model to estimate the costs and benefits of different course of actions. C) Unlike normative economic analysis, positive economic analysis can be tested. D) There is much more disagreement among economists over positive economic analysis than over normative economic analysis.