James used $250,000 from his savings account that paid an annual interest of 15% to purchase a hardware store. After one year, James sold the business for $320,000 . What is his accounting profit?

In the national income accounts, the purchase of a new house counts as

A) consumption expenditure. B) investment. C) a transfer. D) an addition to inventory.

Patents

A) will create a profit incentive to do research. B) might be welfare reducing if granted for too long a period. C) serve as a barrier to entry. D) All of the above.