Refer to Scenario 7

question 221

Multiple Choice

Refer to Scenario 7.1 below to answer the question(s) that follow.
SCENARIO 7.1: You are the owner and only employee of a company that writes computer software that is used by gamblers to collect sports data. Last year you earned a total revenue of $90,000. Your costs for equipment, rent, and supplies were $60,000. To start this business you invested an amount of your own capital that could pay you a return of $40,000 a year.
-Refer to Scenario 7.1. Your accounting profit last year was

• A) $10,000.
• B) $30,000.
• C) $50,000.
• D) $60,000.

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Definitions:

World Trade Agreement

A legally binding agreement between two or more countries designed to lower trade barriers and foster international trade.

International Trade

The exchange of goods and services across international borders, influenced by comparative advantages, exchange rates, and global economic policies.

Netherlands

A country in Northwestern Europe known for its flat landscape, canals, tulip fields, windmills, and cycling routes.

Exports

Products or services manufactured in a particular country and purchased by consumers in a different country, adding to the national income of the exporter.