To find economic profit from accounting profit, it is necessary to
A) subtract dividends.
B) add retained earnings.
C) subtract the opportunity cost of capital.
D) add depreciation expense.
Answer: C
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Economic growth is determined by forces outside the control of the market system.
Answer the following statement(s) true (T) or false (F)
An increase in inflationary expectations __________ interest rate
A) raises the natural B) raises the nominal C) lowers the natural D) lowers the nominal
Which of the following will change the position of the IS curve?
A) An increase planned investment spending B) An increase in interest rates C) An increase in money demand D) An increase in the money supply
Which of these conclusions does the graph U.S. Unemployment by Sex and Age support?
a. The U.S. Department of Labor does not differentiate the gender of teenagers when
reporting unemployment figures.
b. The unemployment rate for adults 20 or older is less than that of the total population.
c. The percentage of unemployed teenagers is overreported because it exceeds the
combined percentages of unemployed men and women.
d. The U.S. Department of Labor does not count teenagers as part of the total
population when reporting unemployment figures.