Which of the following statements regarding accounting and economic profits is FALSE?
A) Economic profits can be zero even if accounting profits are positive.
B) Economic profits = total revenue - (explicit + implicit costs)
C) Accounting profits can be negative if economic profits are positive.
D) Accounting profits = total revenue - explicit costs
Answer: C
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Long lags associated with the legislative process in implementing fiscal policy make it more difficult to use than monetary policy
Indicate whether the statement is true or false
In 2011, total output of goods and services in the United States was approximately
a. $10 trillion. b. $12 trillion. c. $15 trillion. d. $20 trillion.
An economy in which output has decreased and prices have increased would suggest that there has been a:
A. positive supply side shock. B. negative supply side shock. C. positive demand side shock. D. negative demand side shock.
Which statement is true?
A. Income is more evenly distributed along curve X than curve Y. B. Income is more evenly distributed along curve Y than curve X. C. Income is equally distributed along curves X and Y. D. It is impossible to determine income distribution by observing these curves.