Q1. Which of the following statements about profit is true?
a. Profit refers to the revenue received from the sale of a quantity of goods.
b. Profit is the difference between a firm's revenue and its costs.
c. Profit is calculated by multiplying price per unit by the number of units sold.
d. The terms "accounting profit" and "economic profit" can be used inter-changeably.
Q2. Which of the following is an example of an activity undertaken by an entrepreneur?
a. holding a position as the president of a liberal arts college
b. landscape design for your new home
c. running for the president of the United States
d. starting your own pet sitting business
Q3. Suppose when the price of laptops falls, college students buy more laptops. This implies that
a. there is a negative relationship between laptop prices and quantities pur- chased by college students.
b. there is a one-to-one relationship between laptop prices and quantities pur- chased by college students.
c. there is a direct relationship between laptop prices and quantities purchased by college students.
d. there is a positive relationship between laptop prices and quantities pur- chased by college students.