Accounting costs and economic costs differ because
A. Accounting costs include explicit costs, and economic costs do not.
B. Accounting costs exceed economic costs whenever any factor is not paid an explicit wage.
C. Accounting costs include implicit costs, and economic costs do not.
D. Economic costs include the opportunity costs of all resources used, while accounting costs include actual dollar outlays.
Answer: D
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Cost-push inflation occurs when there is ________________.
Fill in the blank(s) with the appropriate word(s).
Brain scientists have found that the human brain devotes more neurons toward processing and interpreting visual information than it does to anything else, therefore:
A. We can always believe what our eyes tell us B. We should only believe what our eyes tell us C. Since our eyes can fool us, we probably make mental mistakes in other areas too D. Behavioral and neoclassical economists agree that our visual impressions are always right
Which of the following is a way to reduce agency costs?
a. Change the decision maker b. Transferring information to the decision maker c. Change the decision maker's incentives d. All of the above
A perfectly competitive firm shuts down if the price of its product is
A) greater than its minimum average variable cost. B) less than its minimum average variable cost. C) greater than its maximum variable cost. D) less than its minimum total cost.