Francis wants to buy some paintings for their store to make it feel more classy. Francis would need to take $20,000 out of their savings account (which earns 1% interest a year) in order to finance the paint-ings. At the end of the year, Francis knows they could sell the paintings for $20,000 but they would choose not to. When calculating this year's economic profit, Francis would count this as a:

When calculating this year's economic profit, Francis would count this as a:

cost.

Explanation:

Francis would include the opportunity cost of $20,000, which the paintings could have fetched, as part of the costs.  The cost will also include the lost 1% interest or $200 a year.  This means that, among other costs, the total cost includes $20,200.  This is one distinguishing factor between economic profit and accounting profit.  Economic profit includes lost opportunity revenues for alternative uses of the resource as costs unlike accounting profit.

B. Finance and Insurance

Explanation:

The Location Quotient (LQ) value of finance and insurance is the highest (1.825) and its employment concentration (102,751) is higighesth as well although not the highest.

We know that when (LQ) is greater that 1, its indicates the high concentration in regional growth and opportunities as finance and insurance is concerned.

On the other hand lowest, (LQ) at manufacturing is less than 1 and the employment is also low (58,435), that indicates that manufacturing employment has less of a share of the total in regional growth and opportunities.

So, if there were a national downturn in these industries, Finance and Isurance is likely to be most closely linked to the residential real estate market in Chicago.