ch12 - ch12 class name student ID Multiple Choice Identify...

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ch12 class name student ID Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Analyzing the behavior of the firm enhances our understanding of a. what decisions lie behind the market supply curve. b. how consumers allocate their income to pur- chase scarce resources. c. how financial institutions set interest rates. d. whether resources are allocated fairly. ____ 2. Bev is opening her own court-reporting business. She spent $5,000 to purchase her steno machine, $2,000 on a new computer, and $500 on miscellaneous office supplies. She financed these purchases by withdrawing $7,500 from her personal savings account. When she closed the account, the bank representative mentioned that she would have earned 4% interest next year. If Bev hadn’t opened her own business, she would have earned a salary of $25,000. In her first year, Bev’s revenues were $30,000. Which of the following statements is correct? a. Both Harry the accountant and Larry the eco- nomist would calculate Bev’s business profits to be $22,500. b. Harry the accountant would calculate Bev’s business profits to be -$2,800; Larry the eco- nomist would calculate Bev’s business profits to be $22,500. c. Harry the accountant would calculate Bev’s business profits to be $22,500; Larry the eco- nomist would calculate Bev’s business profits to be -$2,800. d. Harry the accountant would calculate Bev’s business profits to be $22,200; Larry the eco- nomist would calculate Bev’s business profits to be $22,200. ____ 3. Which of the following statements is correct?
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This note was uploaded on 03/15/2011 for the course ECON 101 taught by Professor Drwang during the Spring '11 term at National Taiwan University.

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ch12 - ch12 class name student ID Multiple Choice Identify...

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