1. We know that technological advancement results in structural unemployment in firms that shut down or when the labor is laid off. Economist argue that this actually creates wealth. Please explain how would this create wealth?
2. Suppose you are a financial advisor that earn $30,000 a year. You quit your job to open up a store selling household cleaning supplies. You are using the store that you own and were renting it out to your brother for $12,000 a year. In addition, you invested $10,000 in the store, which had been in savings earning 5 percent interest. This year's revenues in the new business were $50,000, and explicit costs were $10,000. Calculate your accounting profit. Calculate your economic profit. Should you continue with this business or should you go back to financial advisor job. Why?