Marge Opens an Oxygen Bar in a Building She Owns

question 150

Multiple Choice

Marge opens an oxygen bar in a building she owns.She used to rent the building to her brother in law for $10,000 a year.To open the oxygen bar,Marge quit her job as a physician assistant,which paid $80,000 a year.As a bar owner,Marge has to pay $40,000 a year wages for her bartender,spend $25,000 a year for supplies,and the utilities bill is $9,500 a year.To cover the start-up costs,she used up all of her savings which earned $4,600 in interest.What are her implicit costs?

• A) $10,000
• B) $90,000
• C) $84,600
• D) $94,600
• E) $74,500

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Definitions:

Semantic Memory

General knowledge, as opposed to episodic memory.

Thalamus

An area near the center of the brain involved in the relay of sensory information to the cortex and in the functions of sleep and attention.

Limbic System

A complex system of nerves and networks in the brain, involved with instinct and mood. It controls the basic emotions (fear, pleasure, anger) and drives (hunger, sex, dominance, care of offspring).

Memory Processes

The mental functions involved in acquiring, storing, and retrieving information.