Sheila's Sports Shop Is a Very Popular Sporting Goods Store

question 38

Multiple Choice

Sheila's Sports Shop is a very popular sporting goods store, which has a yearly revenue of $600,000. Sheila runs the business herself. Her alternative employment options are to be a college swimming coach for $50,000 per year or a construction worker for $40,000 per year. Sheila spends $230,000 purchasing goods for resale to her customers. She also has four employees, who each earn $25,000 per year. Sheila owns the building that her Sports Shop is housed in and she could have rented it out for $20,000 per year. Sheila's costs for the resources that she supplies to the business equal

• A) $70,000 per year.
• B) $90,000 per year.
• C) $0 per year.
• D) $330,000 per year.

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Definitions:

WTO

The World Trade Organization, an international body that regulates international trade agreements and aims to ensure smooth, free, and predictable trade flows.

Exploitation

The unfair use of someone's work or resources, often without proper compensation or regard for their wellbeing.

Foreign Direct Investment

A company or individual from one country putting money into business interests in another nation, either by setting up business operations or by purchasing business assets.

Export Processing Zones

Special areas within countries where imported materials undergo processing or manufacturing before being exported again, typically benefiting from incentives like tax exemptions.