Principles of Microeconomics Exam
Complete Questions And Correct
Detailed Answers 100% Solved
Correctly
Suppose an assistant professor of economics is earning a salary of
$60,000 per year. One day she quits her job, withdraws
$80,000 from a bank certificate of deposit (CD) that had been earning 4 percent
per year, and uses the funds to open a bookstore. At the end of the year, she shows
an accounting profit of
$92,500 on her income tax return.
What is her economic profit? Her economic profit for the year is ________
(round your answer to the nearest dollar). - CORRECT ANSWER-29,300
Formula
, 92,500 - (60000+80000*.04)=29,300
Suppose an assistant professor of economics is earning a salary of
$65,000 per year. One day she quits her job, withdraws
$80,000 from a bank certificate of deposit (CD) that had been earning 6 percent
per year, and uses the funds to open a bookstore. At the end of the year, she shows
an accounting profit of
$72,500 on her income tax return.
What is her economic profit? Her economic profit for the year is _______
(round your answer to the nearest dollar). - CORRECT ANSWER-$2,700
Formula
72500-(65000+80000*.06)=2,700
Xavier is an accountant who provides tax services through his own firm. To
provide these services he must rent an office for $20,000
per year, hire a secretary for $24,000, and spend $7,000 per year in advertising.
Explicit Costs
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
Complete Questions And Correct
Detailed Answers 100% Solved
Correctly
Suppose an assistant professor of economics is earning a salary of
$60,000 per year. One day she quits her job, withdraws
$80,000 from a bank certificate of deposit (CD) that had been earning 4 percent
per year, and uses the funds to open a bookstore. At the end of the year, she shows
an accounting profit of
$92,500 on her income tax return.
What is her economic profit? Her economic profit for the year is ________
(round your answer to the nearest dollar). - CORRECT ANSWER-29,300
Formula
, 92,500 - (60000+80000*.04)=29,300
Suppose an assistant professor of economics is earning a salary of
$65,000 per year. One day she quits her job, withdraws
$80,000 from a bank certificate of deposit (CD) that had been earning 6 percent
per year, and uses the funds to open a bookstore. At the end of the year, she shows
an accounting profit of
$72,500 on her income tax return.
What is her economic profit? Her economic profit for the year is _______
(round your answer to the nearest dollar). - CORRECT ANSWER-$2,700
Formula
72500-(65000+80000*.06)=2,700
Xavier is an accountant who provides tax services through his own firm. To
provide these services he must rent an office for $20,000
per year, hire a secretary for $24,000, and spend $7,000 per year in advertising.
Explicit Costs
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
