To Earn Money, You Decide to Open Up a Popcorn

question 5

Essay

To earn money, you decide to open up a popcorn stand at your student union.At the end of your first year of operation, your financial condition is as follows: Assume that the opportunity cost of your time is zero.
$$\begin{array} { | l | l | } \hline \begin{array} { l } \text { Purchase of popcorn making } \\\text { machine }\end{array} & \$ 5,000 \\\hline \text { Purchase of popping corn } & \$ 1,000 \\\hline \text { Revenue from sale of popcorn } & \$ 5,000 \\\hline\end{array}$$ (a) Did you run a deficit or a surplus during your first year?
(b) Assuming a four-year useful life for your popcorn-making machine, how does your answer to (a) change if you evenly depreciate the value of your machine?
(c) How do your answers to (a) and (b) relate to the government's budget balance calculations? Explain.

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Definitions:

Allocate Power

The distribution of authority and decision-making capacity among individuals or groups within an organization.

Communication

The process of sending and receiving symbols with attached meanings.

Countercultures

Groups in which the patterns of values and philosophies outwardly reject those of the organization or social system.

Subcultures

Groups exhibiting unique patterns of values and philosophies not consistent with the dominant culture of the larger organization or system.