Caleb Teaches Economics at Happy State University and Is Paid

question 55

Multiple Choice

Caleb teaches economics at Happy State University and is paid $50,000 per year.He also provides economic forecasts for local businesses for which he charges $100 per hour.Which of the following is true?

• A)All of Caleb's income is salary.
• B)Some of Caleb's income is salary and some is personal interest
• C)All of Caleb's income is proprietor's income.
• D)Some of Caleb's income is salary and some is proprietor's income.
• E)All of Caleb's income is personal interest.

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Definitions:

Shortage/Surplus

A market condition where the quantity demanded exceeds the quantity supplied (shortage) or where the quantity supplied exceeds the quantity demanded (surplus).

Price Floor

A price floor is a government- or group-imposed price control or limit on how low a price can be charged for a product, often above the equilibrium price.

Shortage/Surplus

Economic conditions where the quantity of a good demanded exceeds its supply (shortage) or where supply exceeds demand (surplus).

Chain Of Command

The linking of all employees with successively higher levels of authority.