A business owner makes 50 items a day. Each day he/she contributes 8 hours to produce those items. If hired, elsewhere he/she could have earned 10 an hour. The item sells for 10 each. Production does not stop during weekends. If the explicit costs total 10,00 . for 30 days, the accounting profit for the month equals:
a. 1,760
b. 2,240
c. 11,760
d. 5,000
QUESTION 2For foreigners, the intersection of the demand for US dollars and the supply of US dollar is known as the
a. Inflation rate
b. Exchange rate
c. Price
d. Quantity
QUESTION 3Car Depreciation A common complaint is that a new car will depreciate by 25 as soon as the new owner drives it off the lot. This information comes from resale price data from cars sold just months after the initial purchase. How does adverse selection imply that most cars depreciate much less?
QUESTION 4Accountants and Economists differ in their calculations of profits in that the former consider
a. sunk costs
b. implicit costs only
c. explicit costs only
d. fixed costs
QUESTION 5If US consumers want to buy Chinese goods, they will
a. Buy Yuan and sell US Dollars
b. Sell Yuan and buy US Dollars
c. Neither buy nor sell Yuan
d. Neither buy nor sell dollars
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