What is the difference between accounting profit and economic profit?
What will be an ideal response?
Profit is the difference between revenue and cost. Accounting profit excludes the cost of some economic resources that the firm does not pay for explicitly. Economic profit includes the opportunity cost of all resources used by the firm.
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Which combination of government policies would be most likely increase labor demand?
a. Increasing subsidies to education and increasing subsidies to businesses for hiring new employees b. Reducing income tax rates and cutting transfer payments to the needy c. Raising income tax rates and cutting transfer payments to the needy d. Reducing subsidies to education and increasing subsidies to businesses for hiring new employees e. Increasing subsidies to education and reducing subsidies to businesses for hiring new employees.
Electra Bikes is an American brand with a global presence. Which of the following trade agreements allowed Electra Bikes to expand its business by opening a new market in Canada?
a.NAFTA b.The EU c.MERCOSUR d.ASEAN e.CAFTA
Of all the money spent on farm price supports, about ______ percent goes to large corporate farms.
A. 25 B. 50 C. 75 D. 95
Which of the following is not true about government spending on national defense?
a. It is the third-largest spending category for the U.S. federal government. b. It includes salaries of military personnel. c. It fluctuates over time as the political climate changes. d. It is not financed with tax revenue.