A business owner makes 100 . items a day. Each day he/she contributes 8 hours to produce those items. If hired, elsewhere he/she could have earned 250 an hour. The item sells for 15 each. Production does not stop during weekends. If the explicit costs total 150,00 . for 30 days, the firm's accounting profit for the month equals:
a. 300,000
b. 60,000
c. 450,000
d. 240,000
QUESTION 2In the market for Canadian dollars measured in US dollars, if the price of a Canadian dollar is 0.90 cents US, a US dollar is
a. 0.90 cents Canadian
b. 1 Canadian dollar
c. 1.11 Canadian dollars
d. 1.05 Canadian dollars
QUESTION 3Which of the following is NOT a way to signal high quality
a. wearing a business suit on a job interview
b. scrimping on the tip for the waiter after a dinner date
c. offering an expensive engagement ring to your bride
d. Visiting the beauty salon before a big date
QUESTION 4You and two partners start a company. However, your partners play no role in running the company. You devote all our time and talent to run your own business rather than working for someone else. You incur an(a):
a. explicit cost.
b. marginal cost.
c. sunk cost.
d. opportunity cost.
QUESTION 5In the market for Canadian dollars measured in US dollars, the supply of Canadian dollars is
a. The demand for Canadian dollars
b. The demand for US Dollars
c. The supply of US dollars
d. None of the above
QUESTION 6Which of the following is NOT a way to signal high quality
a. wearing everyday clothes to a job interview
b. leaving a big tip for the waiter after a dinner date
c. offering an expensive engagement ring to your bride
d. Visiting the beauty salon before a big date
QUESTION 7The difference between Capitalism and Socialism is that
a. Capitalism is concerned more about how to slice up the pie
b. Socialism is concerned with making the pie as large as possible
c. Capitalism is concerned with making the pie as large as possible
d. Both a and B
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