Use the Following Graph to Answer the Following Questions

question 22

Multiple Choice

Use the following graph to answer the following questions:

-What is the price of a car if this is a nontrading (closed) economy?

• A) $6,000
• B) $8,000
• C) $10,000
• D) $14,000
• E) $24,000

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Definitions:

Cost of Goods Sold

Costs directly connected to the assembly of products sold by a business, covering materials and labor expenses.

Operating Income

The profit realized from a business's core business operations, excluding deductions of interest and tax.

Operating Expenses

Costs associated with running the day-to-day operations of a business which are necessary to keep the business functioning, excluding the cost of goods sold.

Gross Profit

The distinction between the income from sales and the expense of goods sold prior to subtracting costs for overheads, wages, taxes, and interest.