Marge Sampson produces and sells 400 jars of homemade jelly each month for 3 each. Each month, she pays 200 for jars, 150 for ingredients, and uses her own time, with an opportunity cost of 500 . Her economic profits each month are:
a. 350.
b. 500.
c. 650.
d. 700.
QUESTION 2A bond with a par value of 1,000 is traded at 1,500 . The coupon rate offered on the bond is 10 percent.The bond matures after a period of 5 years . The coupon paid to the bond holder after the end of the first year is:
a. 150.
b. 100.
c. 200.
d. 50.
e. 250
QUESTION 3When the method used to collect a sample biases any conclusions that might be drawn from it, the sample is said to have a selection bias.
Indicate whether the statement is true or false
QUESTION 4Following a decrease in the price of a good, an individual will purchase more of the now less expensive good and less of other more expensive goods. This is known as the _____ effect.
a. income
b. endowment
c. substitution
d. price
e. scale
QUESTION 5Cassie produces and sells 400 jars of homemade jelly each month for 3 each. Each month, she pays 200 for jars, 150 for ingredients, and uses her own time, with an opportunity cost of 300 . Her economic profits each month are:
a. 550.
b. 700.
c. 850.
d. 900.
QUESTION 6Which of the following is sometimes used as a synonym to describe a bond?
a. Stock
b. Fixed-income security
c. Capital asset
d. Retained earning
e. Depreciation
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