When economic profits are negative, accounting profits
A. must be positive.
B. will be negative.
C. will equal zero.
D. could be positive, negative or zero.
Answer: D
You might also like to view...
When a recessionary gap exists, actual output ________ potential output and the rate of inflation will tend to ________.
A. is less than; decrease B. is less than; increase C. exceeds; increase D. exceeds; decrease
As per capita GDP has risen over time in the United States and other countries, the
What will be an ideal response?
The transaction motive for holding money
A. varies inversely with income. B. varies directly with the number of times one is paid annually. C. are used to make expected expenditures. D. are held for the same reasons that precautionary cash balances are held.
A perfectly competitive market is one where:
A. each firm controls the price charged for its product by changing the quantity they produce. B. each firm sells at the government mandated price. C. each firm within the market must sell its good at the market price. D. a firm can affect market price by increasing output.