Scenario 12-10 Walter Builds Birdhouses.He Spends $5 on the Materials for Each

question 206

Multiple Choice

Scenario 12-10
Walter builds birdhouses.He spends $5 on the materials for each birdhouse.He can build one in 30 minutes.He is semi-retired but earns $8 per hour at the local hardware store.He can sell a birdhouse for $20 each.
-Refer to Scenario 12-10.An economist would calculate the total profit for one birdhouse to be

• A) $7.
• B) $11.
• C) $12.
• D) $15.

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Definitions:

Welders

Professionals skilled in joining metal parts together by melting and fusing them using various welding techniques.

Machinists

Skilled workers who operate machine tools to fabricate parts and instruments.

Labor Supply

The total hours that workers wish to work at a given wage rate, in a given time period.

Payroll Tax

Taxes levied on employers or employees, and are based on the salary or wages of employees. These taxes fund social security and healthcare programs.