Introduction to Economics — Unit test Answers

Which of the following is not required by lenders and investors?

Korey’s comic book store has been up and running for 4 years. Korey feels that his store has been successful and is considering moving to a larger property to allow for greater inventory and customer opportunities in his business. He would like investors to cover the cost of his expansion. The profits of Korey’s comic book store for its first four years are outlined below. According to this information, what would be the best estimate for Korey to quote as expected profits in the next year in his new business plan? Year Net Profits 1 $14,250.00 2 $15,390.00 3 $16,621.20 4 $17,950.90 5

Gross profit will always be _____ net income.

A jacket costs $72.90 before it is marked down 42%. What is its new price, to the nearest cent?

The following graph shows the relationship between cost and revenue for a manufacturer of lab coats. Which of the following pairs of equations best suits this graph? Cost I Cost II Revenue III Revenue IV