Prior to the Great Recession of 2007-2009, labor input in the U.S. was growing at nearly:

The definition of a model is a:

a. description of all variables affecting a situation. b. positive analysis of all variables affecting an event. c. simplified description of reality to understand and predict an economic event. d. data adjusted for rational action.

Sebastian decides to open a tree farm. When deciding to open his own business, he turned down two separate job offers of $25,000 and $30,000 and withdrew $20,000 from his savings. Sebastian's savings account paid 3 percent interest. He also borrowed $20,000 from his brother, whom he pays 2 percent interest per year. He spent $15,000 to purchase supplies and earned $50,000 in revenue during his

first year. Which of the following statements is correct? a. Sebastian's economic profit is $4,000 . and his accounting profit is $34,600 . b. Sebastian's economic profit is $4,600, and his accounting profit is $35,000. c. Sebastian's economic profit is -$16,000 . and his accounting profit is $34,600. d. Sebastian's economic profit is -$16,000 . and his accounting profit is $14,600.