When economic profits are positive, accounting profits could be:

A. positive.
B. negative.
C. zero.
D. All of these are possible.


A. positive.

Economics

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In Figure 13-3 above, suppose that the Fed maintains a fixed real money supply and that commodity demand is also fixed. The range of shifts in the LM curve, LM1 to LM2 lead to

A) an unstable equilibrium output, C to B1. B) a stable equilibrium output, C. C) an unstable equilibrium output, B0 to B1. D) a stable equilibrium output, B0 to B1.

Economics

A tax on a good causes the size of the market to increase

a. True b. False Indicate whether the statement is true or false

Economics

A Pigouvian subsidy

A. cannot exist with externalities. B. is the same thing as a Pigouvian tax. C. is measured in terms of Pigouvian dollars. D. moves production to the socially optimal level of output.

Economics

If the money supply of a country doubles, a likely result is ________.

enough demand to give everyone a job inflation a trade surplus a doubling of real GDP

Economics