The difference between economic profit and accounting profit is equal to:
A. implicit and explicit costs.
B. implicit and explicit revenues.
C. zero.
D. implicit revenues minus implicit costs.
Answer: D
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If a tax is imposed per unit of a good sold, ________
A) the supply curve for the good shifts to the right B) the supply curve for the good shifts to the left C) the demand curve for the good shifts to the right D) the demand curve for the good shifts to the left
What is the shape of the average fixed cost curve for a firm in the short run?
a. U-shaped. b. A curve that constantly increases as output expands and eventually approaches infinity at high rates of output. c. A vertical line. d. A curve that declines as output expands and approaches the horizontal-axis when output is large.
The supply of resources, level of technology, and the quality of an economy's institutional arrangements provide the constraint that determines the shape of the
a. short-run aggregate supply curve. b. long-run aggregate supply curve. c. supply of loanable funds. d. aggregate demand curve.
The balance of payments constraint refers to the limits on:
A. exchange rate policy imposed by flexible exchange rates. B. currency convertibility observed in most developing countries. C. domestic macroeconomic policy, arising from a shortage of international reserves. D. macroeconomic policy resulting from IMF conditionality.