The difference between the economic and accounting costs of a firm are
A) the accountant's fees.
B) the corporate taxes on profits .
C) the opportunity costs of the factors of production that the firm owns.
D) the sunk costs incurred by the firm.
E) the explicit costs of the firm.
C
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What is characteristic of a traditional economy?
What will be an ideal response?
____________________ is when a firm is able to produce along its expansion path
Fill in the blank(s) with the appropriate word(s).
During World War II, the economic recession that reduced equilibrium income below potential income in most European countries:
A. eliminated any structural deficit. B. increased the structural deficit. C. eliminated any cyclical deficit. D. increased the cyclical deficit.
Figure 34-9
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In Figure 34-9, hostilities break out between Pastaland and Pestoland after Pestoland violates the Treaty of Basil. Consequently, trade stops and the price of pasta
A. rises to OJ in both countries. B. falls to OC in both countries. C. falls to OC in Pastaland and rises to OJ in Pestoland. D. rises to OJ in Pastaland and falls to OC in Pestoland.