Scott used $4,000,000 from his savings account that paid an annual interest of 5% and a $60,000 loan at an annual interest rate of 5% to purchase a hardware store. After one year, Scott sold the business for $4,100,000 . His accounting profits is:

Kim is participating in an auction in which bids are placed publicly and the price of the good being auctioned increases until there is only one standing bid. This is an example of a(n) ________

A) open outcry English auction B) open outcry Dutch auction C) sealed-bid first-price auction D) sealed-bid second-price auction

An increase in the wage rate will lead to a reduction in the quantity of labor supplied if

a. the substitution effect outweighs the income effect b. the income effect outweighs the substitution effect c. the opportunity costs of leisure do not increase d. the opportunity costs of working always increase e. workers are irrational because otherwise they would be violating the law of supply