Ellie has been working for an engineering firm and earning an annual salary of $80,000 . She decides to open her own engineering business. Her annual expenses will include $15,000 for office rent, $3,000 for equipment rental, $1,000 for supplies, $1,200 for utilities, and a $35,000 salary for a secretary/bookkeeper. Ellie will cover her start-up expenses by cashing in a $20,000 certificate of
deposit on which she was earning annual interest of $500 . According to an economist, which of the following revenue totals will yield Ellie's business $50,000 in economic profits?
a. $55,200
b. $100,200
c. $132,500
d. $185,700
d
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The government of an economy must borrow money from the loanable funds market if the value of:
a. government expenditures is lower than the value of net taxes. b. government expenditures is higher than the value of net taxes. c. consumption expenditures is lower than the value of net taxes. d. investment expenditures is lower than the value of savings.
Ashley bakes bread that she sells at the local farmer's market. If she purchases a new convection oven that reduces the costs of baking bread, the
a. supply curve for Ashley's bread will increase. b. supply curve for Ashley's bread will decrease. c. demand curve for Ashley's bread will increase. d. demand curve for Ashley's bread will decrease.