Katherine gives piano lessons for $20 per hour. She also grows flowers, which she arranges and sells at the local farmer's market. One day she spends 5 hours planting $50 worth of seeds in her garden. Once the seeds have grown into flowers, she can sell them for $150 at the farmer's market. Katherine's accounting profits are
a. $100, and her economic profits are $100.
b. $100, and her economic profits are $0.
c. $0, and her economic profits are $100.
d. $0, and her economic profits are $-100.
b
Economics
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The most recent data indicates households in the top fifth of the income distribution earn as much income as the bottom four fifths combined
a. True b. False
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With increased specialization in the economy, principal-agent problems become
a. more numerous b. less numerous c. more severe, but there are fewer of them d. less severe, but there are more of them e. easier to solve
Economics