Introduction to Economics — Cumulative exam Answers

Dernea Gardening sells wheelbarrows. A wheelbarrow costs $6.94 to produce and it sells for $42.50. The company employs two salespeople, each of whom earns a different commission per wheelbarrow sold, as shown in the table below. The company's expenses last month, not counting production costs or commissions, totaled $524.24. How much profit did Dernea Gardening make from the sales of wheelbarrows last month?

At his comic book store, Korey's Comics, Korey sells approximately $3,250 in comic books each month. But as a comic book dealer, Korey only pays $1,285 for these comic books. Korey's monthly operating expenses, including labor, are $875. Calculate Korey's monthly gross profit.

Sam is planning to open a pool cleaning business from his home. Sam’s business will come with a set-up cost of $9,000 and an annual operational cost of $30,500. Sam anticipates an annual profit of $45,000 for the first year and expects profits to increase by 5.5% annually for the next 5 years. This is all information Sam should include in the _____ component of his business plan.

Sam has been running his swimming pool cleaning business now for five years. He is considering enlarging his service area to a 100 mile radius, which would require two new offices in different parts of town. He would like to take out a business loan to cover the cost of expansion.The profits for Sam's business over the last 5 years are outlined in the table below. According to this information, what would be the best estimate for Sam to quote as expected profits in the next year in his new business plan?Business YearNet Profit1$43,502.252$47,417.453$51,685.024$56,336.685$61,406.98

A plant nursery is having a sale. Potted begonias are marked down 27%, and tomato seedlings are marked down 35%. If you pay $6.57 each for two potted begonias and $2.60 each for three tomato seedlings, how much did you save?

Last month, Korey’s Comics had $4,350 in net sales with a gross profit of $3,320 and a net income of $1,850. Calculate Korey’s net profit margin.

Which best describes why governments collect taxes?

Land is considered a resource because it

Sam is planning to start a pool cleaning business from his home. He has developed the following cost analysis for the set-up and operation for the first year of his business. He has $9,000 in savings and $23,000 in credit that he can use for the business. Approximately what percent of the initial set-up and operation costs will Sam need to finance with a lender or investor?ItemCostTruck$9,000Pool Cleaning Supplies$6,000Payroll$23,000Advertising$1,500

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An exchange rate table makes it easy to compare the

What does elasticity measure in economics?

Labor unions were certain to advocate for the best interests of workers because

In which of the following ways do governments spend money to meet public needs? Check all that apply.

What is the difference between inflation and deflation?

Which statements best explain how globalization offers an advantage to businesses? Choose four answers.

What part does interest play in deficit spending?

Which of these statements most accurately describes the use of currencies in different parts of the world?

Articles of partnership establish

Which describes the difference between a trade surplus and a trade deficit?