Suppose Ernie Gives Up His Job as Financial Advisor for P.E.T.S

question 126

Multiple Choice

Suppose Ernie gives up his job as financial advisor for P.E.T.S., at which he earned $30, 000 per year, to open up a store selling spot remover to Dalmatians.He invested $10, 000 in the store, which had been in savings earning 5 percent interest.This year's revenues in the new business were $50, 000, and explicit costs were $10, 000.Calculate Ernie's accounting profit.

• A)$10, 000
• B)$50, 000
• C)$20, 000
• D)$40, 000
• E)$9, 500

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Definitions:

Minimum Wage

A legislative baseline salary per hour that employers must pay their employees, aiming to reduce poverty and ensure basic financial security.

Unemployed Workers

Individuals in the labor force who are without a job and are actively seeking employment.

Demand D1

This represents a specific demand curve in economic analysis, showing the relationship between the price of a good and the quantity demanded.

Supply S2

Represents a shift in the supply curve in the market, indicating a change in the quantity of goods that suppliers are willing to produce and sell.