Solved

Sam Quits His Job as an Airline Pilot and Opens

question 24

Multiple Choice

Sam quits his job as an airline pilot and opens his own pilot training school. He was earning $40,000 as a pilot. He withdraws $10,000 from his savings where he was earning 6 percent interest and uses the money in his new business. He uses a building he owns as a hanger and could rent it out for $5,000 per year. He rents a computer for $1,200, buys office supplies for $500, rents an airplane for $6,000, pays $1,300 for fuel and maintenance, and hires one worker for $30,000. Sam's total revenue from pilot training classes this year equaled $90,400. Sam's explicit costs this year equals:

Comprehend the concept of derived demand in factor markets.

Recognize the importance of human capital and its investment.

Describe the composition of total income in an economy and the significant share of 'compensation of employees'.

Understand the role and categorization of various inputs and factors in production.

Definitions:

Cheyne-Stokes Breathing

A pattern of breathing characterized by gradual increases and decreases in breathing depth followed by periods of apnea, often seen in heart failure and neurological diseases.

Complicated Grief

A form of grief characterized by an extended period of mourning and difficulty moving on with life after the loss of a loved one.

Attachment Theory

A psychological framework that explores the dynamics of long-term relationships, particularly between caregivers and infants, affecting personality development.

Yearning and Searching

The act of deeply desiring or seeking out something with great eagerness.