Jada Left a Job That Paid $40,000 Per Year

question 73

Multiple Choice

Jada left a job that paid $40,000 per year. At the end of her first year in business, her revenues summed to $90,000, and her explicit costs were $50,000. Also, in order to fund her business startup, Jada cashed in a $20,000 certificate of deposit that was providing an annual yield of 5%. Ceteris paribus, Jada earns _____ profit.

• A) normal
• B) negative economic
• C) positive economic
• D) zero accounting

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Definitions:

Communist

Relating to a political and economic ideology advocating for a classless society where all property is publicly owned.

Father of Capitalism

A term often attributed to Adam Smith, who is credited with laying the foundational theories for modern economic systems based on free-market principles.