Fernando Plans to Sell Hot Coffee, Cider and Tea from a Sidewalk

question 18

Multiple Choice

Fernando plans to sell hot coffee, cider and tea from a sidewalk cart near Wall Street in New York City. Each month he expects to sell $20,000 of product to 4,000 customers. He spent $4,000 on buying his beverage and supplies in bulk for the first month. The rental deposit on the cart was $4,000 and Fernando spent $500 to customize it. He bought a laptop, printer and software for $1,000 and paid a total of $1,000 for licenses. He has $500 in petty case for start up. His monthly costs are: Utilities = $500, Salary = $4,000, Advertising = $0, Insurance = $500, Interest = $0, Rent (cart) = $2,000, Depreciation = $0. Calculate Fernando's start-up costs without a reserve.

• A) $18,000
• B) $14,000
• C) $12,500
• D) $11,000

Comprehend the calculation of economic income and its components.

Grasp the principles of taxation, including double taxation on savings and the debates over the best tax base.

Understand the concepts of horizontal and vertical equity in taxation.

Identify the measures of economic activity, such as flow and stock measures.

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Definitions:

Cultural Differences

The variety of distinct beliefs, values, behaviors, and traditions that exist among groups of people from different backgrounds or societies.

Snap Judgements

Quick decisions or evaluations made spontaneously or without careful consideration.

Contact Hypothesis

The view that bringing members of opposing social groups together will improve intergroup relations and reduce prejudice and discrimination.

Intergroup Relations

The interaction and behavior between members of different social groups, including attitudes, stereotypes, and conflicts.