• Read the textbook excerpt and use the information to answer the Question 1.2.2 Flowers by Cam

Cam Tran is a sole trader who operates a small florist shop in Forest Hill,

London (UK). Cam arranges and delivers flowers to local hospitals, hotels and

schools mainly in south-east London. From time to time, she also receives

large orders for weddings. She has three school-aged children.

(a) Define the term sole trader.

[2 marks]

aces

ations

(b) Examine the costs and benefits to Cam Tran in operating as a sole

trader.

[6 marks]

Source: photo courtesy of a

Drive

.

Important things to note:

What preforms the best over the long term? a) bonds b) mutual funds c) stocks d) certificate of deposit

What is the relationship between marginal external cost, marginal social cost, and marginal private cost? a. marginal social cost equals marginal private cost plus marginal external cost. b. marginal private cost plus marginal social cost equals marginal external cost. c. marginal social cost plus marginal external cost equals marginal private cost. d. marginal external cost equals marginal private cost minus marginal social cost. marginal external cost a. is expressed in dollars, so it is not an opportunity cost b. is an opportunity cost borne by someone other than the producer c. is equal to two times the marginal private cost d. is a convenient economics concept that is not real

Sauer food company has decided to buy a new computer system with an expected life of three years. the cost is $440,000. the company can borrow $440,000 for three years at 14 percent annual interest or for one year at 12 percent annual interest. assume interest is paid in full at the end of each year. a. how much would sauer food company save in interest over the three-year life of the computer system if the one-year loan is utilized and the loan is rolled over (reborrowed) each year at the same 12 percent rate? compare this to the 14 percent three-year loan.