Calculating Profit
What is the equation for calculating profit?
Profit = Revenue - Expenses
Generally, as the price of a product decreases, demand will _________?
Increase
Rent would be an example of what type of cost?
Fixed
What types of countries or communities would have a traditional economy?
A developing country, low tech communities, tribal communities
Natalie set up a lemonade stand at a local flea market this past weekend. Each cup oflemonade cost $1.50. On Saturday, she sold 150 cups of lemonade; on Sunday, she sold 130 cups. If Natalie’s expenses were $215, what were her profits?
$205
A winter coat in the winter would be a want or a need?
A need
A car payment would be an example of what type of cost?
Fixed
In this type of economy, individuals and businesses decide what, how, and for whom goods are produced in this type of economy.
Market Economy
In January, Larkin Company earned a profit of $40,000. The cost of operating the business that month was $175,000. What was the amount of revenue earned by Larkin Company in January?
$215,000
When there is only provider of a product or service, this is known as what?
A monopoly
Your grocery bill would be an example of what type of cost?
Variable
In this economy, the government determines what, how, and for whom products and services are produced.
Command Economy
The Joliet Central Girls Basketball team sold baked goods to raise money. They sold boxes of cookies for $10 each and they ended up selling 500 boxes.
Each box sold cost $4 to make and they spent $100 advertising the fundraiser. How much profit did they make?
$2,900
All economies must answer what three questions?
What to produce, How to produce, For whom to produce?
costs that must be paid regardless of how much of a good or service is produced
The private ownership of resources by individuals rather than the government is called
Capitalism
A local resteraunt sold 1,000 hamburgers this week. They sell each hamburger for $6 each. In addition, they sold 400 shakes. They sell each shake for $5 each.
The cost of making each burger is $3 and the cost for each shake is $2. The restaurant had to pay their employees $500 in wages this week. What is the restaurants profit this week?
$3,700
decrease
Define Variable Costs
costs that go up and down depending on the quantity of the good or service produced
Countries that have a combination of a market and command economy have this type of economy.
Mixed Economy