Solutions%20Quiz%204

Solutions%20Quiz%204 - QUIZ 4 ECON 210 NAME: _ 1. The...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
QUIZ 4 – ECON 210 NAME: ________________________________ 1. The physical act of transforming raw materials into finished goods is known as… a. Consumption b. Production c. Equilibrium d. The marginal rate of technical substitution Information for the following two questions: Below is the 2010’s Income statement for ABYSSINIA – a small book store managed by Elena, who is also the owner. (Assume all costs below are explicit) a. Revenues $100,000 b. Cost of Goods Sold $ 10,000 c. Marketing and sales expenses $ 20,000 d. Labor Costs** $ 15,000 e. Rent on building $ 15,000 f. Miscellaneous expenses $ 20,000 (**Labor costs do not include salary of owner) 2. Suppose Elena has the opportunity to work in a factory for a salary of $25,000/yr or in a hair salon for $15,000/yr, if she weren’t running the store. Elena’s economic profit from running the store would be : a. $15,000 b. -$10,000 c. -$5,000 d. $ 10,000 3. Consider the job opportunities that Elena had in the previous question. However, also
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/26/2012 for the course ECON 210 taught by Professor Staff during the Fall '08 term at Purdue.

Page1 / 2

Solutions%20Quiz%204 - QUIZ 4 ECON 210 NAME: _ 1. The...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online