Identt/ the choice that best completes the statement or answers the question. P-PP'P . Jacqui decides to open her own business and earns $60,000 in accounting prot in the rst year. When deciding to open her own business, she withdrew $30,000 from her savings, which earned 5 percent interest. She also turned down three separate job offers with annual salaries of $30,000, $40,000, and $45,000. What is Jacqui's economic prot from running her own business? $-56,000 $43,000 $4,000 $13,500 2. Suppose the United States has a comparative advantage over Mexico in producing pork. The principle of comparative advantage asserts that a. b. the United States should produce more pork than what it requires and export some of it to Mexico. the United States should produce a moderate quantity of pork and import the remainder of what it requires from Mexico. the United States should refrain altogether from producing pork and import all of what it requires from Mexico. Mexico has nothing to gain from importing United States pork. 3. Refer to the following gure, Columbia should specialize in the production of Chile's Production Possibilities Frontier Colombia's Production Possibilities Frontier an \"Jams 1) \"19m: (Mm-ts) (hp-nus} 18 18 16 16 14 14 12 12 10 10 8 3 s a i 4 2 2 2 4 6 81012141618312! \"W 2 4 6 B 101214161811 m \"INF\"?! (inroads a. coffee and import soybeans. b. soybeans and import coffee. c. both goods and import neither good. d. neither good and import both goods. 4. Refer to the following table, if the price were $4, a a. shortage of 20 units would exist, and price would tend to rise. b. surplus of 50 units would exist, and price would tend to fall. c. shortage of 25 units would exist, and prices would tend to rise. d. surplus of 45 units would exist, and price would tend to fall. 5. Refer to Figure 1. The amount that producers receives is Figure 1: $1.00 $1.50 $2.00 $0.50 9.0;? 6. The deadweight loss of the tax illustrated in Figure 1 is given by the area a. EKG b. ABEH c. EF G d. DF E 7. When demand is elastic, an increase in price will cause a. an increase in total revenue. b. a decrease in total revenue. c. no change in total revenue but an increase in quantity demanded. d. no change in total revenue but a decrease in quantity demanded. 8. Two home-improvement stores (Lopes and HomeMax) in a growing urban area are interested in expanding their market share. Both are interested in expanding the size of their store and parking lot to accommodate potential growth in their customer base. The following game depicts the strategic outcomes that result from the game. Increases in annual prots of the two home-improvement stores are shown in the table below. Table 17-13 HomeMax Lopes Increase the size ofs'tore Do not increase the size of and parking lot store and parking 10! Increase the size . . . . ofstore and I opes = $1.0 million pes = $0.4 million . | omeMax = $1.5 million omeMax = 53 .4 million parking [or Do not increase the size of store and parking lot I opes = $3.2 million pes = $2.0 million I omeMax = $0.6 million omeMax = $2.5 million Refer to Table 17-13. Pursuing its own best interest, Lopes will a. increase the size of its store and parking lot only if HomeMax also increases the size of its store and parking lot. increase the size of its store and parking lot only if HomeMax does not increase the size of its store and parking lot. increase the size of its store and parking lot regardless of the decision made by HomeMax. not increase the size of its store and parking lot regardless of the decision made by HorneMaX. 9. Refer to Table 17-13. Pursuing its own best interest, HomeMax will a. .0 increase the size of its store and parking lot only if Lopes also increases the size of its store and parking lot. increase the size of its store and parking lot only if Lopes does not increase the size of its store and parking lot. increase the size of its store and parking lot regardless of the decision made by Lopes. not increase the size of its store and parking lot regardless of the decision made by Lopes. 10. Refer to Table 17-13 Increasing the size of its store and parking lot is a dominant strategy for a. b. c. d. Lopes, but not for HomeMax. HomeMax, but not for Lopes. both stores. neither store. 11. Refer to Table 17-13. If both stores follow a dominant strategy, HomeMax's annual prot will grow by