The nominal interest rate is 4%, the inflation rate is 1% and the tax rate is 20%. Given U.S. tax laws, how is after-tax real return computed?

Suppose Ernie gives up his job as financial advisor for P.E.T.S., at which he earned $30,000 per year, to open up a store selling spot remover to Dalmatians. He invested $10,000 in the store, which had been in savings earning 5 percent interest. This year's revenues in the new business were $50,000 . and explicit costs were $10,000 . Calculate Ernie's economic profit

a. $10,000 b. $50,000 c. $20,000 d. $40,000 e. $9,500

Unemployment or underemployment of labor might explain why an economy would be operating inside its production possibilities curve (PPC)

a. True b. False Indicate whether the statement is true or false