Economic profit of a decision in question equals
a. accounting profit of the decision in question + its opportunity cost.
b. accounting profit of the decision in question ? accounting profit of the best available alternative.
c. accounting profit of the decision in question + its opportunity cost + overheads.
d. its opportunity cost + accounting profit of the best available alternative.
b
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Workers expect inflation to rise from 3% to 5% next year. As a result, this should
A) move the economy down along a stationary short-run aggregate supply curve. B) move the economy up along a stationary short-run aggregate supply curve. C) shift the short-run aggregate supply curve to the left. D) shift the short-run aggregate supply curve to the right.
People trade because
A) they are able to take advantage of others. B) government regulates the market. C) the must do so. D) they make themselves better off.
The beginning point of a graph (the 0,0 point) is known as
a. ground zero. b. mother lode. c. the origin. d. square one. e. the beginning.
Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. If the price of pecans is $9, what changes in the market would result in an economically efficient output?
A) The price would decrease, the demand would increase, and the supply would decrease. B) The quantity supplied would increase, the quantity demanded would decrease, and the equilibrium price would decrease. C) The price would decrease, the quantity supplied would decrease, and the quantity demanded would increase. D) The price would increase, the quantity demanded would decrease, and the quantity supplied would increase.