Hillary starts her own business. She quits her $50,000 a year job, rents an office for $15,000 a year, pays wages and salaries of $50,000 a year, utilities of $4,000 a year, and materials of $20,000. She uses her own car for sales work rather than
leasing an equivalent car for $6000 a year. If revenues are $140,000, her accounting profit and economic profit are respectively
A) $45,000 and $1,000.
B) $51,000 and $5,000.
C) $51,000 and -$5,000.
D) $45,000 and $51,000.
Answer: C
Economics
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A. 8. B. 1.25. C. 5. D. 0.80.
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Deficits and surpluses are best viewed as:
A. comprehensive measures of government's budget. B. a summary measure of the financial health of the economy. C. a summary measure of a nation's fiscal policy. D. a summary measure of a nation's monetary policy.
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